Elf Beauty raised its full-year outlook late Tuesday after crushing estimates for its fiscal first quarter. ELF stock leapt to a new high Wednesday.
While Elf raised guidance, "we continue to view top line and margin guidance as potentially conservative given mix benefits," analysts at Bank of America said in a Wednesday note. They maintained a buy rating and raise the price target to $155 from $120 prior, saying "the company is still in a high growth phase."
Cosmetics company Elf belongs to the IBD Leaderboard watchlist and the IBD 50 list of top growth stocks. ELF stock is out of range from its latest buy point. It has more than doubled year to date and more than tripled in the past year on the back of explosive growth.
Elf Beauty Earnings Nearly Triple
Estimates: Analysts expected Elf Beauty earnings to jump 46.5% to 57 cents, according to FactSet. Revenue was seen vaulting nearly 51%, year over year, to $184.6 million.
Results: On a per-share basis, Elf earnings vaulted 182% to $1.10 from 39 cents a year ago, the earnings release showed. Sales surged 76.5% to $216.3 million. That marked just slightly slowing growth from a 78% sales gain in the prior quarter, handily beating estimates.
Outlook: For fiscal 2024, ELF raised sales guidance to $792 million-802 million, up from $705 million-720 million. It also hiked EPS guidance to $2.19-$2.22, from $1.73-$1.76.
Prior to Q1 results, Wall Street saw full-year EPS of $1.83 on revenue of $730 million. Both were above ELF's previous guidance, given in May.
Futures Fall After Nasdaq Breaks Key Levels
ELF Beauty Stock Soars To New High
Shares of ELF Beauty rocketed 14.3% to 133.19 Wednesday, hitting a 52-week high of 137.48 intraday. ELF stock lost 0.5% to 116.13 in stock market action Tuesday. The beauty stock is extended from an 108.45 three-weeks-tight buy point that formed in June, a follow-on entry, the IBD MarketSmith chart shows. That means shares are not in buy range after their surge to multiyear highs.
ELF Beauty stock touched the 10-week line last week, but it's had multiple tests of the 10-week since the last clear breakout in late January.
The stock's relative strength line is surging again.
Among other beauty stocks, Estee Lauder and retailers Ulta Beauty and Sally Beauty all fell Wednesday. All are well off highs.
A Wall Street Journal report suggests that consumers are spending more selectively amid economic uncertainty, and leaning toward cheaper mass-market brands — like Elf.
Cheap, Trendy, Clean Makeup
A relatively young company, Elf Beauty is known for low-cost but trendy makeup.
It claims to offer clean, vegan and cruelty-free cosmetics and skin care products.
Backed by strong growth, Elf stock has jumped roughly 146% year to date and 300% in the past year.
