Dwarf beauty (dwarf) raised earnings forecasts above expectations late Wednesday after smashing lofty estimates for the fiscal second quarter. ELF Beauty stock rose above its long-term level on Thursday.
ELF Beauty Profits
Estimates: Analysts expected ELF Beauty’s earnings to jump 46% to 53 cents per share, according to FactSet. Revenues grew 61% year-over-year to $197.1 million.
results: ELF Beauty’s earnings more than doubled to 82 cents per share. The company said revenue rose 76% to $215.5 million, driven by strong retail and e-commerce sales.
Prospects: For fiscal 2024, the company on Wednesday guided earnings per share at $2.47-$2.50, up from its previous view of $2.19-$2.22.
Before Wednesday’s results, analysts had expected full-year earnings per share to be $2.46, an increase of 48% from fiscal 2023. The fiscal year ends in March.
It’s the latest in a series of big reports published for ELF Beauty in Oakland, California.
Dwarf Beauty Stock
ELF stock jumped nearly 10% to 103 on the stock market today. ELF Beauty stock reclaimed its 200-day moving average in intraday trading on Thursday after falling 10.2% on Tuesday to undermine that support level.
Shares of the fast-growing cosmetics company, a favorite of millennials and Gen Z, fell on Tuesday as one analyst predicted a slowdown ahead. Thursday morning’s action saw the stock briefly rise above some short-term moving averages as well.
Consumer discretionary stocks have withered since September amid a broad market decline. But as of Thursday morning, ELF Beauty stock still holds gains of more than 85% from its January breakout after a firm buy point at 56.92, a MarketSmith chart shows.
ELF Stock Ready for a Recession?
Despite ELF Beauty’s earnings rise, analysts at UBS said Tuesday they expect a strong beat and rise report, the Fly reported.
But Jefferies analyst Ashley Heljans wrote on Tuesday that ELF has seen some slowdown in sales, citing research firm Nielsen.
ELF Beauty’s trailing four-week sales were up 45% from a year earlier in the week of October 21, the data showed. This compares to sales of the previous four weeks, which rose by 49%.
However, Heljans said Baron ELF stock remains a top pick. “It’s the best beauty company prepared for any type of trade or any type of recession,” she said.
The term “trade down” refers to consumers looking for less expensive products when the economy gets tough.
Amid its recent decline, ELF Beauty stock is showing a rise in mutual fund ownership.
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