Ulta Beauty (ULTA) Stock Is Falling Despite Third-Quarter Earnings Beat
Zacks Investment Research | Nov 30, 2017 05:18AM ET
Ulta Beauty Inc. (NASDAQ:ULTA) just released its third quarter fiscal 2017 earnings results, posting earnings of $1.70 per share and revenues of $1.34 billion. Currently, ULTA is a #3 (Hold) on the Zacks Rank, and is down 5.7% to $209 per share in trading shortly after its earnings report was released.
Ulta:
Beat earnings estimates. The beauty giant reported earnings of $1.70 per share, surpassing the Zacks Consensus Estimate of $1.67 per share. Net income increased 19.5% to $104.6 million.
Matched revenue estimates. The company saw revenues of $1.34 billion, coming in line with our consensus estimate of $1.34 billion and growing 18.6%. Ulta estimates that Hurricanes Harvey and Irma resulted in about $14 million in lost sales.
Comparable sales increased 10.3% compared to an increase of 16.7% in the prior year quarter, but this quarter’s growth was driven by 6.0% transaction growth and 4.3% growth in average ticket.
E-commerce sales surged 62.0% to $119.8 million, representing 370 basis points of Ulta’s total comps.
Ulta expects net sales in the range of $1,926 million to $1,959 million for Q4, with comps, including e-commerce sales, increasing 8% to 10%. EPS is estimated to be in the range of $2.73 to $2.78. The company also reaffirmed its previously announced fiscal 2017 guidance.
“Our third quarter results clearly demonstrate the strength and distinct advantages of the Ulta Beauty business model,” said Mary Dillon, Chief Executive Officer. “We delivered double digit comparable sales growth, in spite of a moderation in the growth rate of our largest category - makeup - and meaningful disruption from hurricanes.”
Here’s a graph that looks at Ulta’s price, consensus, and EPS surprise:
Ulta Beauty, Inc. is a beauty retailer primarily in the United States and the premier beauty destination for cosmetics, fragrance, skin, hair care products and salon services. Ulta Beauty, Inc., formerly known as Ulta Salon, Cosmetics & Fragrance Inc., is based in Bolingbrook, Illinois.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.