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e.l.f. Beauty Readies for Q2 Earnings: What Should Investors Expect?
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Key Takeaways
e.l.f. Beauty's Q2 revenues are expected to jump 36.8% to $470.6 million, while EPS may fall 10.3%.
Product launches, strategic pricing and momentum in e.l.f. SKIN and Naturium may have boosted sales.
Rhode's European expansion may have fueled growth, while marketing costs and retail shifts pressured margins.
e.l.f. Beauty, Inc. (ELF - Free Report) is likely to witness top-line growth when it reports second-quarter fiscal 2027 earnings on Nov. 4. The Zacks Consensus Estimate for revenues is pegged at $470.6 million, indicating a 36.8% increase from the year-ago reported number.
The consensus mark for earnings has risen by a penny over the past 30 days to 61 cents a share, though it suggests a decline of 10.3% from the year-ago period’s figure. ELF has a trailing four-quarter surprise of 61.5%, on average.
Factors Likely to Influence ELF’s Upcoming Results
e.l.f. Beauty's second-quarter results are likely to benefit from improving trends in its core e.l.f. Cosmetics business, supported by targeted pricing actions and strengthening unit momentum. The company's decision to maintain lower prices on approximately 10% of its SKUs may have stimulated consumer demand while reinforcing its value proposition. Favorable comparisons against the year-ago period, when the company temporarily halted shipments on orders that did not reflect its price increase, are also expected to have supported organic sales growth.
Product innovation and category expansion are likely to have provided additional momentum. Encouraging consumer response to the fall 2026 cosmetics launches, introduced in July, may have strengthened demand and supported market share. The expansion into haircare through e.l.f. Hair's exclusive partnership with Target, alongside continued momentum in e.l.f. SKIN and Naturium, could have further aided performance.
The company's international expansion initiatives are also likely to have bolstered revenues. Rhode's planned September launch across 19 European countries through Sephora, supported by associated pipeline shipments, is expected to have been a significant growth driver. Improving trends for the core e.l.f. brand in the U.K. and Germany, supported by marketing initiatives and expanded distribution, may have provided additional impetus. Management anticipated total net sales growth in the mid-30% range for the quarter.
However, profitability could have faced pressure from increased marketing and digital investments, alongside targeted price reductions. Management planned to reinvest the tariff refunds received in the first quarter across the remaining fiscal year, primarily through marketing and pricing initiatives. Rhode's continued shift toward retail distribution may have weighed on gross margins, partly offsetting benefits from lower year-over-year tariff rates and earlier price increases.
Earnings Whispers for ELF
Our proven model doesn’t conclusively predict an earnings beat for e.l.f. 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.
e.l.f. Beauty currently sports a Zacks Rank #1, but it has an Earnings ESP of -1.64%. 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 Estee Lauder Companies (EL - Free Report) currently has an Earnings ESP of +4.09% and a Zacks Rank #3. The consensus estimate for quarterly revenues is pegged at $3.7 billion, which indicates an improvement of 4.8% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Estee Lauder Companies’ upcoming quarter’s EPS is pegged at 52 cents, which calls for 62.5% growth from the figure reported in the prior-year quarter. EL delivered a trailing four-quarter earnings surprise of 41.4%, on average.
Sysco Corporation (SYY - Free Report) currently has an Earnings ESP of +2.46% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues stands at $22.2 billion, which suggests 4.9% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Sysco’s upcoming quarter’s EPS is pegged at $1.17, which calls for a 1.7% increase from the year-ago period’s figure. SYY delivered a trailing four-quarter earnings surprise of nearly 1%, on average.
Vital Farms, Inc. (VITL - Free Report) currently has an Earnings ESP of +4.88% and a Zacks Rank of 3. The Zacks Consensus Estimate for VITL’s upcoming quarter’s revenues is pegged at $184.6 million, suggesting a 7.2% decline from the figure reported in the prior-year quarter.
The consensus estimate for Vital Farms’ bottom line is pegged at a loss of 14 cents per share, implying a deterioration from the year-ago quarter’s earnings of 36 cents.
View the Zacks #1 Rank List
Image: Shutterstock
e.l.f. Beauty Readies for Q2 Earnings: What Should Investors Expect?
Key Takeaways
e.l.f. Beauty, Inc. (ELF - Free Report) is likely to witness top-line growth when it reports second-quarter fiscal 2027 earnings on Nov. 4. The Zacks Consensus Estimate for revenues is pegged at $470.6 million, indicating a 36.8% increase from the year-ago reported number.
The consensus mark for earnings has risen by a penny over the past 30 days to 61 cents a share, though it suggests a decline of 10.3% from the year-ago period’s figure. ELF has a trailing four-quarter surprise of 61.5%, on average.
e.l.f. Beauty Price, Consensus and EPS Surprise
e.l.f. Beauty price-consensus-eps-surprise-chart | e.l.f. Beauty Quote
Factors Likely to Influence ELF’s Upcoming Results
e.l.f. Beauty's second-quarter results are likely to benefit from improving trends in its core e.l.f. Cosmetics business, supported by targeted pricing actions and strengthening unit momentum. The company's decision to maintain lower prices on approximately 10% of its SKUs may have stimulated consumer demand while reinforcing its value proposition. Favorable comparisons against the year-ago period, when the company temporarily halted shipments on orders that did not reflect its price increase, are also expected to have supported organic sales growth.
Product innovation and category expansion are likely to have provided additional momentum. Encouraging consumer response to the fall 2026 cosmetics launches, introduced in July, may have strengthened demand and supported market share. The expansion into haircare through e.l.f. Hair's exclusive partnership with Target, alongside continued momentum in e.l.f. SKIN and Naturium, could have further aided performance.
The company's international expansion initiatives are also likely to have bolstered revenues. Rhode's planned September launch across 19 European countries through Sephora, supported by associated pipeline shipments, is expected to have been a significant growth driver. Improving trends for the core e.l.f. brand in the U.K. and Germany, supported by marketing initiatives and expanded distribution, may have provided additional impetus. Management anticipated total net sales growth in the mid-30% range for the quarter.
However, profitability could have faced pressure from increased marketing and digital investments, alongside targeted price reductions. Management planned to reinvest the tariff refunds received in the first quarter across the remaining fiscal year, primarily through marketing and pricing initiatives. Rhode's continued shift toward retail distribution may have weighed on gross margins, partly offsetting benefits from lower year-over-year tariff rates and earlier price increases.
Earnings Whispers for ELF
Our proven model doesn’t conclusively predict an earnings beat for e.l.f. 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.
e.l.f. Beauty currently sports a Zacks Rank #1, but it has an Earnings ESP of -1.64%. 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 Estee Lauder Companies (EL - Free Report) currently has an Earnings ESP of +4.09% and a Zacks Rank #3. The consensus estimate for quarterly revenues is pegged at $3.7 billion, which indicates an improvement of 4.8% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Estee Lauder Companies’ upcoming quarter’s EPS is pegged at 52 cents, which calls for 62.5% growth from the figure reported in the prior-year quarter. EL delivered a trailing four-quarter earnings surprise of 41.4%, on average.
Sysco Corporation (SYY - Free Report) currently has an Earnings ESP of +2.46% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues stands at $22.2 billion, which suggests 4.9% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Sysco’s upcoming quarter’s EPS is pegged at $1.17, which calls for a 1.7% increase from the year-ago period’s figure. SYY delivered a trailing four-quarter earnings surprise of nearly 1%, on average.
Vital Farms, Inc. (VITL - Free Report) currently has an Earnings ESP of +4.88% and a Zacks Rank of 3. The Zacks Consensus Estimate for VITL’s upcoming quarter’s revenues is pegged at $184.6 million, suggesting a 7.2% decline from the figure reported in the prior-year quarter.
The consensus estimate for Vital Farms’ bottom line is pegged at a loss of 14 cents per share, implying a deterioration from the year-ago quarter’s earnings of 36 cents.