Ulta (ULTA) To Report Earnings Tomorrow: Here Is What To Expect

Radek Strnad /
2023/08/23 11:41 am EDT

Beauty, cosmetics, and personal care retailer Ulta Beauty (NASDAQ:ULTA) will be reporting earnings tomorrow after the bell. Here's what to expect.

Last quarter Ulta reported revenues of $2.63 billion, up 12.3% year on year, in line with analyst expectations. It was a decent quarter for the company, with same store sales, revenue, and EPS beating expectations, even though the magnitude was small.

Is Ulta buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Ulta's revenue to grow 8.74% year on year to $2.5 billion, slowing down from the 16.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.85 per share.

Ulta Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing five upwards revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 5.99%.

Looking at Ulta's peers in the specialty retail segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Bath & Body Works's revenues decreased 3.65% year on year, missing analyst estimates by 0.89%,  and Sally Beauty reported revenue decline of 3.17% year on year, missing analyst estimates by 1.68%. Bath & Body Works was down 8.47%, and Sally Beauty was flat after the results.

Read our full analysis of Bath & Body Works's results here and Sally Beauty's results here.

Technology stocks have been hit hard by fears of higher interest rates and while some of the specialty retail stocks have fared somewhat better, they have not been spared, with share price declining 6.07% over the last month. Ulta is down 4.96% during the same time, and is heading into the earnings with an analyst price target of $528.6, compared to share price of $429.36.

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The author has no position in any of the stocks mentioned.