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Things to Consider Before Sally Beauty's (SBH) Q1 Earnings

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Sally Beauty Holdings, Inc. (SBH - Free Report) is likely to register top-and bottom-line growth when it reports first-quarter fiscal 2022 earnings on Feb 2. The Zacks Consensus Estimate for quarterly revenues is pegged at $997.9 million, indicating a rise of 6.6% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for quarterly earnings is unchanged in the past 30 days at 61 cents per share, indicating growth of 22% from the figure reported in the year-ago quarter. The international specialty retailer and distributor of professional beauty supplies has a trailing four-quarter earnings surprise of 87.8%, on average. In the last reported quarter, Sally Beauty delivered an earnings surprise of 28%.

Sally Beauty Holdings, Inc. Price, Consensus and EPS Surprise

 

Sally Beauty Holdings, Inc. Price, Consensus and EPS Surprise

Sally Beauty Holdings, Inc. price-consensus-eps-surprise-chart | Sally Beauty Holdings, Inc. Quote

 

Things to Note

Sally Beauty is benefiting from a growing e-commerce channel. The company is focused on enhancing its digital capabilities and implementing strategic initiatives around fulfillment and customer engagement. In this context, Sally Beauty’s Buy Online, Pick Up In-Store services have been gaining traction.

Sally Beauty’s focus on Transformation Plans, including efforts to enhance customers’ experience, curtail costs and improveretail fundamentals, bodes well. Further, the company is undertaking prudent efforts to strengthen its supply chain and meet customers’ needs aptly. Strategic buyouts are also helping Sally Beauty strengthen its portfolio.The persistence of these factors is likely to have benefited Sally Beauty’s performance in first-quarter fiscal 2022.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Sally 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.

Sally Beauty carries a Zacks Rank #2 and has an Earnings ESP of -3.84%.

Some Stocks With Favorable Combinations

Here are some 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.

Dollar Tree, Inc. (DLTR - Free Report) currently has an Earnings ESP of +1.07% and carries a Zacks Rank of 2. The company is likely to register a decline in the bottom line when it reports fourth-quarter fiscal 2021 earnings. The consensus mark for quarterly earnings has remained unchanged in the past 30 days to $1.78 per share, projecting a 16.4% drop from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.

That said, Dollar Tree’s top line is expected to rise year over year. The consensus mark for quarterly revenues is pegged at $7.1 billion, suggesting growth of 5.3% from the figure reported in the prior-year quarter. DLTR’s stock has increased 16% in the past three months.

Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +1.30% and carries a Zacks Rank of 2. The company is likely to register growth in the bottom line when it reports second-quarter fiscal 2022 earnings. The consensus mark for quarterly earnings has moved up by a couple of cents in the past 30 days to $2.64 per share, suggesting a decline of 23.4% from the year-ago quarter’s reported figure.

Costco’s top line is also expected to rise year over year. The consensus mark for quarterly revenues is pegged at $50.4 billion, suggesting growth of 12.6% from the figure reported in the prior-year quarter. COST’s stock has inched up 0.1% in the past three months.

Bath & Body Works, Inc. (BBWI - Free Report) currently has an Earnings ESP of +0.52% and carries a Zacks Rank of 3. The company is likely to register a decline in the bottom line when it reports fourth-quarter 2021 earnings. The consensus mark for quarterly earnings has moved up by a penny in the past 30 days to $2.26 per share, suggesting a decline of 25.4% from the year-ago quarter’s reported figure.

Bath & Body Works’ top line is also expected to fall year over year. The consensus mark for quarterly revenues is pegged at nearly $3 billion, indicating a fall of 38.2% from the figure reported in the prior-year quarter. BBWI’s stock has declined 23.8% in the past three months.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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