Ulta Beauty Prepares for Q4 Earnings Report Amid Mixed Market Performance
Ulta Beauty, Inc. (ULTA), a prominent specialty beauty retailer, holds a market cap of $19.2 billion. The company, based in Bolingbrook, Illinois, is set to release its fiscal Q4 earnings results on Thursday, March 13. Their product range includes cosmetics, fragrances, haircare, skincare, bath and body products, professional hair items, and salon styling tools.
Analysts Predict Decline in Profits
As the earnings report approaches, analysts forecast a profit of $7.09 per share, representing a nearly 12.3% decrease from $8.08 per share during the same quarter last year. Notably, Ulta Beauty has outperformed Wall Street’s expectations in three of the previous four quarters, while falling short just once. In the third quarter, the company reported an earnings per share (EPS) of $5.14, exceeding predictions by 15%.
Fiscal Year 2024 Outlook
Looking ahead to fiscal 2024, analysts anticipate ULTA will report an EPS of $23.96, down almost 8% from the $26.03 per share recorded in fiscal 2023.
ULTRA’s Stock Performance Amid Market Challenges
Over the past year, shares of ULTA have dropped 16.3%. This decline has outpaced the S&P 500 Index’s 24.1% increase and the Consumer Discretionary Select Sector SPDR Fund’s 34.9% rise during the same period. Increased competition and consumer reluctance to spend on non-essentials due to economic concerns have contributed to ULTA’s struggles.
Despite these challenges, Ulta’s shares jumped 9% following their Q3 earnings report on December 5. The company reported a profit of $5.14 per share and revenues reaching $2.5 billion. These figures reflected a 1.4% increase in profits and a 1.7% rise in revenue from the previous year, primarily driven by the opening of new stores. In light of this performance, Ulta raised its fiscal 2024 EPS guidance to a range of $23.20-$23.75, strengthening investor confidence. The company expects net sales between $11.1-$11.2 billion while predicting that comparable sales might remain flat or decline by 1% year over year.
Analyst Sentiment Shift
Currently, analysts express moderate optimism about Ulta Beauty’s stock, assigning an overall “Moderate Buy” rating. Among the 28 analysts covering the stock, 12 recommend a “Strong Buy,” two suggest a “Moderate Buy,” 13 advise holding, and one indicates a “Strong Sell.” This outlook reflects a slight decrease in bullishness compared to three months ago, when 13 analysts offered a “Strong Buy.”
The consensus average price target for ULTA stands at $465.92, indicating a potential upside of 12.7% from its current levels.
On the date of publication, Neharika Jain did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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