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Sally Beauty (SBH) Queued for Q3 Earnings: Things to Consider

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Sally Beauty Holdings, Inc. (SBH - Free Report) is likely to witness a year-over-year decline in the top and the bottom line when it reports third-quarter fiscal 2022 earnings on Aug 4. The Zacks Consensus Estimate for quarterly revenues is pegged at $943.6 million, indicating a decrease of 7.7% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for quarterly earnings has remained unchanged over the past 30 days at 59 cents per share, indicating a decline of 13.2% from the figure reported in the prior-year quarter. The international specialty retailer and distributor of professional beauty supplies has a trailing four-quarter earnings surprise of 8.7%, on average. In the last reported quarter, Sally Beauty delivered a negative earnings surprise of 7.8%.

Sally Beauty Holdings, Inc. Price and EPS Surprise

 

Sally Beauty Holdings, Inc. Price and EPS Surprise

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

 

Things To Consider

Sally Beauty is battling a tough macro environment, including the impact of inflationary pressures. The company is also challenged by supply chain issues. In its last earnings call, management highlighted that the company generated record sales in third-quarter fiscal 2021, courtesy of reopening momentum across markets. We believe that the persistence of volatile macro conditions coupled with unfavorable year-over-year comparisons might be a concern for Sally Beauty’s performance in the to-be-reported quarter.

Apart from this, Sally Beauty has been grappling with escalated selling, general and administrative expenses for a while. That said, focus on Transformation Plan to improve customers’ experience, augment e-commerce capacities, undertake innovations and enhance retail fundamentals is a breather.

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 #3 and an Earnings ESP of 0.00%.

Some Stocks WithFavorable Combinations

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

Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +2.24% and a Zacks Rank #2. The company is likely to register bottom-line improvement when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.84 suggests an increase of 6.1% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ulta Beauty's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues stands at $2.2 billion, which indicates an improvement of 11.7% from the figure reported in the prior-year quarter. ULTA has a trailing four-quarter earnings surprise of 49.8%, on average.

The Children's Place (PLCE - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank #3. The company is likely to register a decline in the bottom line when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 97 cents suggests a decline from $1.71 reported in the year-ago quarter.

The Children's Place’s top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $395.6 million, which indicates a decline of 4.4% from the figure reported in the prior-year quarter. PLCE has a trailing four-quarter earnings surprise of 58%, on average.

Abercrombie & Fitch (ANF - Free Report) currently has an Earnings ESP of +15.39% and a Zacks Rank #3. The company is likely to register a decline in the bottom line when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 26 cents suggests a decline from $1.70 reported in the year-ago quarter.

Abercrombie & Fitch’s top line is also expected to decline year over year. The consensus mark for quarterly revenues, pegged at $848.8 million, suggests a 1.9% dip from the year-ago quarter’s reported figure. ANF has a trailing four-quarter negative earnings surprise of 73.8%, on average.

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