Ulta Beauty Inc (NASDAQ:ULTA) is anticipated to release its quarterly earnings with an EPS of $4.53 and revenue of $2.5 billion.
The Zacks Consensus Estimate predicts a slight decrease in revenue and a 12.2% decline in EPS compared to the previous year.
Despite challenges, Ulta has managed an average earnings surprise of nearly 3% over the past four quarters, indicating consistent performance above analyst expectations.
Ulta Beauty Inc (NASDAQ:ULTA), a leading name in the beauty retail sector, offers a diverse array of cosmetics, skincare, and haircare products. With numerous stores across the United States, Ulta stands as a formidable competitor against beauty giants like e.l.f. Beauty Inc and Estee Lauder Companies Inc. The company is poised to announce its quarterly earnings on December 5, 2024, with projections pointing towards an earnings per share (EPS) of $4.53 and revenue nearing $2.5 billion.
Contrastingly, the Zacks Consensus Estimate provides a slightly different perspective, expecting revenues to touch $2.48 billion, a marginal 0.3% dip from the corresponding quarter last year. The forecasted EPS stands at $4.45, marking a significant 12.2% fall from the preceding year. This downturn is largely attributed to the unpredictable consumer behavior and the intensifying competition from new beauty distribution channels, adversely affecting Ulta’s market share.
Despite these hurdles, Ulta Beauty has showcased an impressive average earnings surprise of nearly 3% across the last four quarters. This streak of surpassing analyst expectations could potentially sway investor sentiment in a positive direction. Notably, the consensus EPS estimate has seen a 0.3% upward revision over the past 30 days, hinting at an analyst reassessment that might influence the stock’s short-term trajectory.
Recently, Ulta’s stock experienced a 4.2% uplift, climbing to $375.70, as it endeavors to surpass its 100-day moving average. This surge follows a period of decline, marking its lowest point since August. However, it’s worth noting that Ulta’s shares have historically faced challenges in rallying post-earnings announcements over the last two years. The forthcoming earnings report is deemed crucial for Ulta and its industry counterparts, underscored by the anticipated reports from e.l.f. Beauty Inc and Estee Lauder Companies Inc.
From a financial standpoint, Ulta Beauty boasts a price-to-earnings (P/E) ratio of approximately 15.53, shedding light on the market’s valuation of its earnings. The company’s price-to-sales ratio stands at about 1.65, reflecting the value investors assign to its revenue streams. With a low debt-to-equity ratio of 0.12, Ulta illustrates a prudent approach towards leveraging debt in its capital structure. Moreover, a current ratio of roughly 1.76 signifies a robust capacity to fulfill short-term obligations with its short-term assets.
