e.l.f. Beauty Inc. (ELF - Free Report) just released third quarter fiscal 2017 results, posting earnings of 17 cents per share and revenues of $71.9 million. Right now, ELF is a #4 (Sell) on the Zacks Rank, and is down 6.25% to $18 a share in trading shortly after its earnings report was released.
Beat earnings estimates. The beauty company posted adjusted earnings of 17 cents per share, soaring past the Zacks Consensus Estimate of 6 cents. Net income increased 90% to $8.5 million for the quarter.
Beat revenue estimates. The company saw revenue figures of $71.9 million, also beating our consensus estimate of $68 million and increasing 28% year-over-year.
Gross margin expanded to 60% from 58% reported in the third quarter of 2016.
Looking ahead, e.l.f. beauty adjusted its 2017 outlook to approximately $270 million of net sales, reflecting timing of pipeline shipments, new distribution, and category trends. It also increased its adjusted net income to $28 million and EPS to 55 cents per share.
“We are pleased with our third quarter results highlighted by a 28% increase in net sales and strong earnings growth,” stated Tarang Amin, Chairman and Chief Executive Officer. “In a category currently experiencing headwinds, we continue to gain market share driven by the successful execution of our strategy, and mission to make luxurious beauty accessible for all.”
e.l.f. Beauty operates as a cosmetic company. Its cosmetic category primarily consists of face makeup, eye makeup, lip products, nail products and cosmetics sets/kits, excludes beauty tools and accessories, such as brushes and applicators. e.l.f. Beauty is based in Oakland, United States.
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