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Ulta Beauty (ULTA) Queued for Q3 Earnings: Things to Note

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Ulta Beauty, Inc. (ULTA - Free Report) is likely to register top-and bottom-line growth when it reports third-quarter fiscal 2021 numbers on Dec 2. The Zacks Consensus Estimate for quarterly revenues is pegged at $1,895 million, which suggests a rise of 22.1% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Ulta Beauty’s quarterly earnings has moved up by a penny in the past 30 days to $2.47 per share. The projection suggests 50.6% growth from the year-ago quarter’s reported figure. The retailer of beauty products has a trailing four-quarter earnings surprise of 63.9%, on average. Ulta Beauty’s bottom line has outpaced the Zacks Consensus Estimate by 83.1% in the last reported quarter.

Ulta Beauty Inc. Price and EPS Surprise

 

Ulta Beauty Inc. Price and EPS Surprise

Ulta Beauty Inc. price-eps-surprise | Ulta Beauty Inc. Quote

 

Things To Note

Ulta Beauty is benefiting from the growing skincare category, thanks to consumers’ rising interest in self-care and the company’s focus on newness and innovation. In its last earnings call, management highlighted its intentions to re-launch the skin services in certain stores during third-quarter fiscal 2021. Apart from this, Ulta Beauty has been benefiting from its omnichannel strength.

The company’s initiatives to boost online promotions and customer engagement have been supporting online sales growth. The company is also benefiting from its mobile app and virtual try-on capabilities. These factors are likely to have boosted Ulta Beauty’s performance in the to-be-reported quarter.

Softness in the makeup category is a concern for Ulta Beauty. That being said, the category is seeing better trends with reduced mask-wearing and increased use of makeup. Apart from this, any rise in SG&A costs might have impacted margins in the fiscal third quarter.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Ulta Beauty this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Ulta Beauty currently carries a Zacks Rank #3 and has an Earnings ESP of +0.63%.

More Stocks With Favorable Combinations

Here are some more companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat.

PVH Corp. (PVH - Free Report) currently has an Earnings ESP of +1.61% and a Zacks Rank #2. The company is expected to register bottom-line growth when it reports third-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings has moved up by a penny in the past seven days to $2.07 per share. The projection suggests a rise of 56.8% from the year-ago quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

PVH Corp.’s top line is expected to rise year over year. The consensus mark for revenues is pegged at $2,402 million, indicating an increase of 13.4% from the figure reported in the year-ago quarter. PVH has a trailing four-quarter earnings surprise of 177.5%, on average.

Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +1.00% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports first-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has moved up 2.8% in the past 30 days to $2.59 per share. The projection suggests growth of 13.1% from the year-ago quarter’s reported figure.

Costco’s top line is also expected to rise year over year. The consensus mark for revenues is pegged at $49,613 million, indicating an increase of 14.8% from the figure reported in the year-ago quarter. COST has a trailing four-quarter earnings surprise of 7.7%, on average.

The Kroger Co. (KR - Free Report) currently has an Earnings ESP of +2.59% and a Zacks Rank of 3. It is likely to register a bottom-line decline when it reports third-quarter fiscal 2021 numbers. Although the Zacks Consensus Estimate for quarterly earnings has increased by a penny in the past 30 days to 66 cents per share, the same suggests a decline of about 7% from the year-ago period’s tally.

Kroger’s top line is likely to register year-over-year growth in the quarter. The Zacks Consensus Estimate for its quarterly revenues is pegged at $31,148 million, suggesting an increase of 4.8% from the figure reported in the prior-year quarter. KR delivered an earnings surprise of 18%, on average, in the trailing four quarters.


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