Ulta Beauty (ULTA) Stock Down On Q2 Earnings Miss, View Cut
Zacks Investment Research | Aug 29, 2019 10:49PM ET
Shares of Ulta Beauty, Inc. (NASDAQ:ULTA) crashed around 21.6% in the after-hours trading session on Aug 29, as it posted dismal second-quarter fiscal 2019 results. The company’s top line and bottom line missed the Zacks Consensus Estimate. Lower-than-expected results also prompted management to cut its view for fiscal 2019. We note that the current outlook for fiscal 2019 indicates headwinds in the US cosmetics market. All these factors hurt investors’ sentiment.
Nevertheless, the company’s earnings and sales improved on a year-over-year basis. Notably, robust traffic and ticket growth, improvement in comparable sales (comps) as well as higher market share gains positively impacted its quarterly results. Let’s discuss.
Q2 Numbers
Ulta Beauty’s adjusted earnings grew 12.2% to $2.76 per share but lagged the Zacks Consensus Estimate of $2.79. Including tax gains of about 4 cents, the company’s earnings rose 11.5%.
Ulta Beauty Inc. Price, Consensus and EPS Surprise
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