What To Expect From e.l.f.'s (ELF) Q1 Earnings

Jabin Bastian /
2024/05/21 3:02 am EDT

Cosmetics company e.l.f. Beauty (NYSE:ELF) will be reporting earnings tomorrow after market hours. Here's what investors should know.

e.l.f. beat analysts' revenue expectations by 13.4% last quarter, reporting revenues of $270.9 million, up 84.9% year on year. It was a very strong quarter for the company, with full-year revenue guidance exceeding analysts' expectations and an impressive beat of analysts' earnings estimates.

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 55.8% year on year to $292 million, slowing from the 78.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.33 per share.

e.l.f. Total Revenue

The majority of analysts covering the company have 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 15.5% on average.

Looking at e.l.f.'s peers in the personal care segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Edgewell Personal Care posted flat year-on-year revenue, missing analysts' expectations by 1.2%, and Olaplex reported a revenue decline of 13.1%, topping estimates by 3.9%. Edgewell Personal Care traded up 4.4% following the results while Olaplex was also up 15.7%.

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 3.5% on average over the last month. e.l.f. is down 4.7% during the same time and is heading into earnings with an average analyst price target of $204.7 (compared to the current share price of $153.95).

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