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Ulta Beauty Inc(ULTA-Q)
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Ulta Earnings: What To Look For From ULTA

StockStory - Wed Nov 29, 2023

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Beauty, cosmetics, and personal care retailer Ulta Beauty (NASDAQ:ULTA) will be reporting results tomorrow after market hours. Here's what to look for.

Last quarter Ulta reported revenues of $2.53 billion, up 10.1% year on year, beating analyst revenue expectations by 1.3%. It was a decent quarter for the company, with revenue and EPS exceeding analysts' expectations.

Is Ulta buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Ulta's revenue to grow 5.6% year on year to $2.47 billion, slowing down from the 17.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.98 per share.

Ulta Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 4.7%.

Looking at Ulta's peers in the specialty retail segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Sally Beauty's revenues decreased 4.3% year on year, missing analyst estimates by 1.1% and Bath and Body Works reported revenue decline of 2.6% year on year, exceeding estimates by 0.4%. Sally Beauty traded down 1.6% on the results, Bath and Body Works was flat on the results.

Read our full analysis of Sally Beauty's results here and Bath and Body Works's results here.

There has been positive sentiment among investors in the specialty retail segment, with the stocks up on average 10.3% over the last month. Ulta is up 9.7% during the same time, and is heading into the earnings with analyst price target of $506.4, compared to share price of $418.3.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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The author has no position in any of the stocks mentioned.