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Ulta Beauty (ULTA) Q1 Earnings: Is a Beat in the Offing?
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Ulta Beauty, Inc.(ULTA - Free Report) , a leading beauty retailer in the U.S., is slated to announce first-quarter fiscal 2017 earnings on May 25. In the trailing four quarters, the company outperformed the Zacks Consensus Estimate by an average of 5.7%. In the preceding quarter, it came up with a positive earnings surprise of 5.2%. Let’s see how things are shaping up for this announcement.
What to Expect?
Investors are keen on finding out whether Ulta Beauty will be able to continue its positive earnings surprise streak in the quarter to be reported. The current Zacks Consensus Estimate for the quarter under review is $1.79 compared with $1.45 reported a year ago. We note that the Zacks Consensus Estimate has gone up by a penny in the last 30 days. Further, analysts who were polled by Zacks expect revenues of $1,276 million, reflecting an increase of 18.8% from the year-ago quarter.
Ulta Beauty forms part of the Retail-Wholesale sector, which is in the bottom 25% of the Zacks Classified sectors (12 out of 16). As per the latest Earnings Preview, total earnings and revenues for the sector are anticipated to increase 0.8% and 3.4%, respectively. We note that the Retail-Wholesale sector has outperformed the broader market in the past three months. In the said time frame, this Zacks categorized sector has gained 7.2% while the S&P 500 index has advanced 1.1%.
Factors at Play
Unlike many retailers, Ulta Beauty has been successful in implementing the right balance between online and physical stores, providing greater competitive edge over other brick & mortar retailers. Moreover, the company benefits from a broad merchandise portfolio, rapid growth in its loyalty program, solid sales and effective marketing. Successful strategy implementation led Ulta Beauty to beat earnings and sales estimates in the trailing 13 quarters. Further, Ulta Beauty has been gaining from solid eCommerce growth, which was a stupendous 63.4% in fiscal fourth-quarter 2016. The company also remains keen on growing store base and plans to open another 100 stores in fiscal 2017.
In the past one year, Ulta Beauty has outperformed the broader industry by a wide margin. While the company’s shares increased 42.7%, the Zacks classified Retail–Miscellaneous industry has declined 1.2%.
Nevertheless, the company is still on the back foot due to limited global brand awareness, alongside challenges related to cheaper alternatives and changing consumer preference.
For fiscal first quarter, the company expects sales in the range of $1,244–$1,265 million. Additionally, earnings per share are expected in the range of $1.75–$1.85. While the beauty retailer retained its tradition of providing a conservative guidance, we believe this will help it deliver better-than-expected results.
What Does the Zacks Model Say?
Our proven model shows that Ulta Beauty is likely to beat earnings estimates this quarter. This is because a stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Most Accurate estimate stands at $1.80 cents and the Zacks Consensus Estimate is pegged at $1.79. So the ensuing +0.56% ESP and the company’s Zacks Rank #2 make us reasonably confident of an earnings beat.
Ulta Beauty Inc. Price, Consensus and EPS Surprise
Burlington Stores, Inc. (BURL - Free Report) has a Zacks Rank #2 and an Earnings ESP of +2.86%.
Best Buy Co., Inc. (BBY - Free Report) has a Zacks Rank #2 and an Earnings ESP of +10.00%.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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Ulta Beauty (ULTA) Q1 Earnings: Is a Beat in the Offing?
Ulta Beauty, Inc.(ULTA - Free Report) , a leading beauty retailer in the U.S., is slated to announce first-quarter fiscal 2017 earnings on May 25. In the trailing four quarters, the company outperformed the Zacks Consensus Estimate by an average of 5.7%. In the preceding quarter, it came up with a positive earnings surprise of 5.2%. Let’s see how things are shaping up for this announcement.
What to Expect?
Investors are keen on finding out whether Ulta Beauty will be able to continue its positive earnings surprise streak in the quarter to be reported. The current Zacks Consensus Estimate for the quarter under review is $1.79 compared with $1.45 reported a year ago. We note that the Zacks Consensus Estimate has gone up by a penny in the last 30 days. Further, analysts who were polled by Zacks expect revenues of $1,276 million, reflecting an increase of 18.8% from the year-ago quarter.
Ulta Beauty forms part of the Retail-Wholesale sector, which is in the bottom 25% of the Zacks Classified sectors (12 out of 16). As per the latest Earnings Preview, total earnings and revenues for the sector are anticipated to increase 0.8% and 3.4%, respectively. We note that the Retail-Wholesale sector has outperformed the broader market in the past three months. In the said time frame, this Zacks categorized sector has gained 7.2% while the S&P 500 index has advanced 1.1%.
Factors at Play
Unlike many retailers, Ulta Beauty has been successful in implementing the right balance between online and physical stores, providing greater competitive edge over other brick & mortar retailers. Moreover, the company benefits from a broad merchandise portfolio, rapid growth in its loyalty program, solid sales and effective marketing. Successful strategy implementation led Ulta Beauty to beat earnings and sales estimates in the trailing 13 quarters. Further, Ulta Beauty has been gaining from solid eCommerce growth, which was a stupendous 63.4% in fiscal fourth-quarter 2016. The company also remains keen on growing store base and plans to open another 100 stores in fiscal 2017.
In the past one year, Ulta Beauty has outperformed the broader industry by a wide margin. While the company’s shares increased 42.7%, the Zacks classified Retail–Miscellaneous industry has declined 1.2%.
Nevertheless, the company is still on the back foot due to limited global brand awareness, alongside challenges related to cheaper alternatives and changing consumer preference.
For fiscal first quarter, the company expects sales in the range of $1,244–$1,265 million. Additionally, earnings per share are expected in the range of $1.75–$1.85. While the beauty retailer retained its tradition of providing a conservative guidance, we believe this will help it deliver better-than-expected results.
What Does the Zacks Model Say?
Our proven model shows that Ulta Beauty is likely to beat earnings estimates this quarter. This is because a stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Most Accurate estimate stands at $1.80 cents and the Zacks Consensus Estimate is pegged at $1.79. So the ensuing +0.56% ESP and the company’s Zacks Rank #2 make us reasonably confident of an earnings beat.
Ulta Beauty Inc. Price, Consensus and EPS Surprise
Ulta Beauty Inc. Price, Consensus and EPS Surprise | Ulta Beauty Inc. Quote
Other Stocks Poised to Beat Earnings Estimates
Here are some more companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Papa Murphy's Holdings, Inc. (FRSH - Free Report) flaunts a Zacks Rank #1 and has an Earnings ESP of +12.50%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Burlington Stores, Inc. (BURL - Free Report) has a Zacks Rank #2 and an Earnings ESP of +2.86%.
Best Buy Co., Inc. (BBY - Free Report) has a Zacks Rank #2 and an Earnings ESP of +10.00%.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>