ELF Beauty hiked earnings outlook above consensus late Wednesday after crushing lofty estimates for its fiscal second quarter. ELF Beauty stock gapped up above a long-term level Thursday.
ELF Beauty Earnings
Estimates: Analysts expected ELF Beauty earnings to jump 46% to 53 cents per share, according to FactSet. Revenue was seen growing 61%, year over year, to $197.1 million.
Results: ELF Beauty earnings more than doubled to 82 cents per share. Revenue soared 76% to $215.5 million, driven by strong retail and e-commerce sales, the company said.
Outlook: For fiscal 2024, the company on Wednesday guided EPS of $2.47-$2.50, up from its prior view for $2.19-$2.22.
Ahead of Wednesday's results, analysts were expecting full-year EPS of $2.46, a 48% increase from fiscal 2023. The fiscal year ends in March.
It's the latest in a series of big beat-and-raise reports for Oakland, Calif.-based ELF Beauty.
ELF Beauty Stock
ELF stock jumped nearly 10% to 103 on the stock market today. ELF Beauty stock regained the 200-day moving average in intraday action Thursday after sinking 10.2% Tuesday to undercut that support level.
Shares in the fast-growing cosmetics company, a favorite among millennials and Gen Zers, had plunged Tuesday as one analyst saw a slowdown ahead. Thursday morning's move saw the stock punch briefly above some short-term moving averages as well.
The consumer discretionary stock had wilted since September amid a broad market decline. But as of Thursday morning, ELF Beauty stock still holds a more than 85% gain from its January breakout past a 56.92 flat-base buy point, the MarketSmith chart shows.
ELF Stock Ready For A Recession?
Despite a high bar for ELF Beauty earnings, analysts at UBS said Tuesday they expect a "strong" beat-and-raise report, the Fly reported.
But Jefferies analyst Ashley Helgans wrote Tuesday that ELF has seen some sales deceleration, citing research firm Nielsen.
The trailing four-week sales for ELF Beauty were up 45% from the prior year in the week of Oct. 21, the data showed. That compared with previous trailing four-week sales that were up 49%.
Still, Helgans told Barron's ELF stock remains a top pick. "They're the best beauty company positioned for any kind of trade down or any kind of recession," she said.
"Trade down" refers to consumers seeking less expensive products when an economy turns difficult.
ELF Beauty makes and markets a variety of affordable and cruelty-free cosmetics. The company sells both online and through stores such as Target and Walmart.
Amid its recent pullback, ELF Beauty stock shows rising mutual fund ownership.
