Ulta Beauty (NASDAQ:ULTA) will release its quarterly earnings report on Thursday, 2024-12-05. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Ulta Beauty to report an earnings per share (EPS) of $5.47.
Investors in Ulta Beauty are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Overview of Past Earnings
In the previous earnings release, the company missed EPS by $0.17, leading to a 4.01% drop in the share price the following trading session.
Here's a look at Ulta Beauty's past performance and the resulting price change:
| Quarter | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|
| EPS Estimate | 5.47 | 6.24 | 7.53 | 4.95 |
| EPS Actual | 5.30 | 6.47 | 8.08 | 5.07 |
| Price Change % | -4.0% | 2.0% | -5.0% | 11.0% |
Stock Performance
Shares of Ulta Beauty were trading at $395.3 as of December 03. Over the last 52-week period, shares are down 19.3%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.
Analyst Opinions on Ulta Beauty
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Ulta Beauty.
With 15 analyst ratings, Ulta Beauty has a consensus rating of Neutral. The average one-year price target is $407.6, indicating a potential 3.11% upside.
Comparing Ratings Among Industry Peers
The analysis below examines the analyst ratings and average 1-year price targets of Dick's Sporting Goods, Chewy and Tractor Supply, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- Dick's Sporting Goods received a Neutral consensus from analysts, with an average 1-year price target of $247.25, implying a potential 37.45% downside.
- The consensus outlook from analysts is an Outperform trajectory for Chewy, with an average 1-year price target of $37.44, indicating a potential 90.53% downside.
- Analysts currently favor an Buy trajectory for Tractor Supply, with an average 1-year price target of $300.45, suggesting a potential 23.99% downside.
Analysis Summary for Peers
Within the peer analysis summary, vital metrics for Dick's Sporting Goods, Chewy and Tractor Supply are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Ulta Beauty | Neutral | 0.88% | $978.18M | 10.87% |
| Dick's Sporting Goods | Neutral | 0.49% | $1.09B | 7.61% |
| Chewy | Outperform | 2.63% | $843.84M | 52.96% |
| Tractor Supply | Buy | 1.65% | $1.29B | 10.51% |
Key Takeaway:
Ulta Beauty ranks highest in Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth and Consensus rating.
Delving into Ulta Beauty's Background
With 1,385 stores at the end of fiscal 2023 and a partnership with Target, Ulta Beauty is the largest specialized beauty retailer in the US. The firm offers makeup (41% of 2023 sales), fragrances, skin care (19% of sales), and hair care products (19% of sales), and bath and body items. Ulta offers private-label products and more than 600 individual brands. It also offers salon services, including hair, makeup, skin, and brow services, in all stores. Most Ulta stores are approximately 10,000 square feet and are in suburban strip centers. Ulta was founded in 1990 and is based in Bolingbrook, Illinois.
Breaking Down Ulta Beauty's Financial Performance
Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.
Revenue Growth: Over the 3 months period, Ulta Beauty showcased positive performance, achieving a revenue growth rate of 0.88% as of 31 July, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Net Margin: Ulta Beauty's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 9.9% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Ulta Beauty's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 10.87% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Ulta Beauty's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 4.44%, the company showcases efficient use of assets and strong financial health.
Debt Management: With a below-average debt-to-equity ratio of 0.82, Ulta Beauty adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for Ulta Beauty visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
