Cosmetics company e.l.f. Beauty (NYSE:ELF) will be reporting results tomorrow after market close. Here's what investors should know.
e.l.f. beat analysts' revenue expectations by 9.8% last quarter, reporting revenues of $321.1 million, up 71.4% year on year. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but underwhelming earnings guidance for the full year.
Is e.l.f. a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting e.l.f.'s revenue to grow 40.8% year on year to $304.7 million, slowing from the 76.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.84 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. e.l.f. has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 14.9% on average.
Looking at e.l.f.'s peers in the personal care segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Edgewell Personal Care posted flat year-on-year revenue, meeting analysts' expectations, and Olaplex reported a revenue decline of 4.8%, in line with consensus estimates.
Read our full analysis of Edgewell Personal Care's results here and Olaplex's results here.
There has been positive sentiment among investors in the personal care segment, with share prices up 3.4% on average over the last month. e.l.f. is down 11.8% during the same time and is heading into earnings with an average analyst price target of $223.6 (compared to the current share price of $182).
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