Ulta (ULTA) Reports Earnings Tomorrow: What To Expect

Beauty, cosmetics, and personal care retailer Ulta Beauty (NASDAQ:ULTA) will be announcing earnings results this Thursday after market hours. Here’s what to look for.

Ulta beat analysts’ revenue expectations by 4.2% last quarter, reporting revenues of $2.79 billion, up 9.3% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

Is Ulta a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Ulta’s revenue to grow 7.3% year on year to $2.71 billion, improving from the 1.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.56 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Ulta has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.9% on average.

Looking at Ulta’s peers in the beauty and cosmetics retailer segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Sally Beauty delivered year-on-year revenue growth of 1.3%, beating analysts’ expectations by 1.6%, and Warby Parker reported revenues up 15.2%, falling short of estimates by 1.2%. Sally Beauty traded down 3.4% following the results while Warby Parker was also down 9.6%.

Read our full analysis of Sally Beauty’s results here and Warby Parker’s results here.

There has been positive sentiment among investors in the beauty and cosmetics retailer segment, with share prices up 5.2% on average over the last month. Ulta is up 6% during the same time and is heading into earnings with an average analyst price target of $576.91 (compared to the current share price of $548.82).

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