We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sally Beauty Gears Up for Q4 Earnings: What to Expect From the Stock?
Read MoreHide Full Article
Key Takeaways
Sally Beauty's Q4 revenues are pegged at $933 million, down 0.2% year over year.
Earnings per share are projected at 49 cents, marking a 2% decline.
Higher marketing and labor costs offset gains from cost savings and brand refresh efforts.
Sally Beauty Holdings, Inc. ((SBH - Free Report) ) is likely to register a top and bottom line decline when it reports fourth-quarter fiscal 2025 earnings on Nov. 13. The Zacks Consensus Estimate for revenues is pegged at $933 million, indicating a decrease of 0.2% from the prior-year quarter's level.
The consensus estimate for earnings has been stable over the past 30 days at 49 cents a share, which calls for 2% decline compared with the prior-year quarter's level. Sally Beauty delivered a trailing four-quarter earnings surprise of 8.3%, on average.
Sally Beauty Holdings, Inc. Price, Consensus and EPS Surprise
Sally Beauty has been experiencing macroeconomic challenges that are weighing on its discretionary spending, particularly among value-conscious consumers. Customers have been increasingly “choiceful” in their purchasing behavior, focusing on value and trading down on price-sensitive categories. The persistence of cautious consumer behavior and uneven category performance is likely to have constrained overall sales momentum in the fiscal fourth quarter.
At the same time, the company has been facing profitability pressures due to planned cost increases. On its last earnings call, management indicated that adjusted operating margin is likely to have declined modestly in the fiscal fourth quarter, reflecting higher marketing investments to support the Sally brand refresh in Orlando.
However, Sally Beauty has been making meaningful progress with its core strategic initiatives aimed at driving sustainable, long-term growth. The company has been focusing on deepening customer connections, expanding high-margin owned brands, fostering innovation and improving operational efficiency. These efforts are designed to offer a cushion amid the aforementioned headwinds.
Earnings Whispers for SBH Stock
Our proven model does not conclusively predict an earnings beat for Sally Beauty this time. 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, which is not the case here.
Sally Beauty currently carries a Zacks Rank #3 and has an Earnings ESP of -1.03%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
The consensus estimate for Ulta Beauty’s third-quarter fiscal 2025 earnings is pegged at $4.47 per share, implying a decline of 13% from the year-ago quarter. For Ulta Beauty’s quarterly revenues, the consensus mark is pegged at $2.7 billion, which indicates an increase of 7.1% from the year-ago quarter. ULTA delivered a trailing four-quarter earnings surprise of 16.3%, on average.
Five Below, Inc. ((FIVE - Free Report) ) currently has an Earnings ESP of +74.71% and a Zacks Rank of 2. FIVE is likely to register a top-line increase when it reports third-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $969.9 million, indicating a 15% rise from the figure reported in the prior-year quarter.
The consensus estimate for Five Below’s earnings is pegged at 22 cents per share, implying a 47.6% decline from the year-ago quarter. FIVE delivered a trailing four-quarter earnings surprise of 50.5%, on average.
Dollar General Corporation ((DG - Free Report) ) currently has an Earnings ESP of +12.31% and a Zacks Rank #2. The Zacks Consensus Estimate for DG’s third-quarter fiscal 2025 earnings per share is pegged at 95 cents, implying 6.7% year-over-year growth.
The Zacks Consensus Estimate for quarterly revenues is pegged at $10.62 billion, which indicates an increase of 4.3% from the figure reported in the prior-year quarter. Dollar General delivered a trailing four-quarter earnings surprise of 11.3%, on average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Sally Beauty Gears Up for Q4 Earnings: What to Expect From the Stock?
Key Takeaways
Sally Beauty Holdings, Inc. ((SBH - Free Report) ) is likely to register a top and bottom line decline when it reports fourth-quarter fiscal 2025 earnings on Nov. 13. The Zacks Consensus Estimate for revenues is pegged at $933 million, indicating a decrease of 0.2% from the prior-year quarter's level.
The consensus estimate for earnings has been stable over the past 30 days at 49 cents a share, which calls for 2% decline compared with the prior-year quarter's level. Sally Beauty delivered a trailing four-quarter earnings surprise of 8.3%, on average.
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 Know Ahead of SBH’s Q4 Earnings
Sally Beauty has been experiencing macroeconomic challenges that are weighing on its discretionary spending, particularly among value-conscious consumers. Customers have been increasingly “choiceful” in their purchasing behavior, focusing on value and trading down on price-sensitive categories. The persistence of cautious consumer behavior and uneven category performance is likely to have constrained overall sales momentum in the fiscal fourth quarter.
At the same time, the company has been facing profitability pressures due to planned cost increases. On its last earnings call, management indicated that adjusted operating margin is likely to have declined modestly in the fiscal fourth quarter, reflecting higher marketing investments to support the Sally brand refresh in Orlando.
However, Sally Beauty has been making meaningful progress with its core strategic initiatives aimed at driving sustainable, long-term growth. The company has been focusing on deepening customer connections, expanding high-margin owned brands, fostering innovation and improving operational efficiency. These efforts are designed to offer a cushion amid the aforementioned headwinds.
Earnings Whispers for SBH Stock
Our proven model does not conclusively predict an earnings beat for Sally Beauty this time. 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, which is not the case here.
Sally Beauty currently carries a Zacks Rank #3 and has an Earnings ESP of -1.03%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Ulta Beauty, Inc. ((ULTA - Free Report) ) has an Earnings ESP of +0.24% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Ulta Beauty’s third-quarter fiscal 2025 earnings is pegged at $4.47 per share, implying a decline of 13% from the year-ago quarter. For Ulta Beauty’s quarterly revenues, the consensus mark is pegged at $2.7 billion, which indicates an increase of 7.1% from the year-ago quarter. ULTA delivered a trailing four-quarter earnings surprise of 16.3%, on average.
Five Below, Inc. ((FIVE - Free Report) ) currently has an Earnings ESP of +74.71% and a Zacks Rank of 2. FIVE is likely to register a top-line increase when it reports third-quarter fiscal 2025 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $969.9 million, indicating a 15% rise from the figure reported in the prior-year quarter.
The consensus estimate for Five Below’s earnings is pegged at 22 cents per share, implying a 47.6% decline from the year-ago quarter. FIVE delivered a trailing four-quarter earnings surprise of 50.5%, on average.
Dollar General Corporation ((DG - Free Report) ) currently has an Earnings ESP of +12.31% and a Zacks Rank #2. The Zacks Consensus Estimate for DG’s third-quarter fiscal 2025 earnings per share is pegged at 95 cents, implying 6.7% year-over-year growth.
The Zacks Consensus Estimate for quarterly revenues is pegged at $10.62 billion, which indicates an increase of 4.3% from the figure reported in the prior-year quarter. Dollar General delivered a trailing four-quarter earnings surprise of 11.3%, on average.