Beauty supply retailer Sally Beauty (NYSE:SBH) will be announcing earnings results tomorrow morning. Here’s what you need to know.
Sally Beauty beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $942.3 million, up 1.2% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ earnings estimates.
Is Sally Beauty a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Sally Beauty’s revenue to grow 1.6% year on year to $935.8 million, a reversal from the 4.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.47 per share.
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. Sally Beauty has missed Wall Street’s revenue estimates three times over the last two years.
With Sally Beauty being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for specialty retail stocks. However, investors in the segment have had steady hands going into earnings, with share prices flat over the last month. Sally Beauty’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $11.40 (compared to the current share price of $12.77).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.