Beauty, cosmetics, and personal care retailer Ulta Beauty (NASDAQ: ULTA) will be announcing earnings results tomorrow afternoon. Here’s what you need to know.
Ulta beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $3.49 billion, down 1.9% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.
Is Ulta a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Ulta’s revenue to grow 2.6% year on year to $2.80 billion, in line with the 3.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.83 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Ulta has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Ulta’s peers in the specialty retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Warby Parker delivered year-on-year revenue growth of 11.9%, missing analysts’ expectations by 0.8%, and Sally Beauty reported a revenue decline of 2.8%, falling short of estimates by 2%. Warby Parker traded down 2.2% following the results while Sally Beauty was up 14.4%.
Read our full analysis of Warby Parker’s results here and Sally Beauty’s results here.
There has been positive sentiment among investors in the specialty retail segment, with share prices up 11.4% on average over the last month. Ulta is up 8.1% during the same time and is heading into earnings with an average analyst price target of $422.45 (compared to the current share price of $422).
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