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Here's Why Ulta Salon (ULTA) Stock is Soaring Today

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Shares of Ulta Salon, Cosmetics & Fragrance, Inc. (ULTA - Free Report) gained over 10% in morning trading Thursday after the company raised its profit and sales outlook for the current quarter. Ulta now expects earnings to come in at $1.35 to $1.38 per share, up from its previously-announced range of $1.25 to $1.30 per share.

The company also raised its same-store sales growth expectations. Ulta believes it will sees comps growth of 14% to 15% this quarter, up from 11% to 13%. Additionally, the cosmetics retailer announced that it expects earnings growth to be in the “low twenties” for the next three fiscal years.

Currently, Ulta holds a Zacks Rank #2 (Buy) and the Zacks Consensus Estimate stands at $1.30 per share, meaning that Ulta’s new forecast could push analysts to move their estimates even higher. Ulta’s projected “low twenties” earnings growth for next year is in line with our current consensus estimates.

Ulta’s latest growth projections should be no surprise for investors following the stock; the company currently has an “A” grade for Growth in our Style Scores system, and it has been one of the strongest retail stocks of 2016. Heading into Thursday, shares of Ulta were up nearly 28% on the year.

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