• Kumar

Ulta Beauty Will Report Earnings Today! Here’s What we think.

Ulta Beauty, Inc. ULTA is likely to register a decline in the top and bottom lines when it reports second-quarter fiscal 2020 numbers on Aug 27. The Zacks Consensus Estimate has dropped 13.6% over the past 30 days to 19 cents per share. This also suggests a slump of 93.1% from earnings of $2.76 reported in the prior-year period. However, Ulta Beauty delivered a negative earnings surprise in the last reported quarter. Further, this beauty retailer has a trailing four-quarter negative earnings surprise of 86.8%, on average. The Zacks Consensus Estimate for revenues is pegged at almost $1,277 million, indicating a decline of almost 24% from the prior-year quarter’s reported figure.

Ulta Beauty Inc. Price, Consensus and EPS Surprise

Ulta Beauty Inc. price-consensus-eps-surprise-chart | Ulta Beauty Inc. Quote


Moreover, Ulta has a strong balance sheet, and analysts see reasons to stay positive, including increasing demand for skin-care products, strong online sales, and a loyal customer base. Others have high hopes that Ulta will rebound quickly when people start to leave the house again.

Analysts are looking for Ulta to earn 8 cents a share on revenue of $1.25 billion. That compares with a $1.39 per-share loss and revenue of $1.17 billion in the previous quarter.

Just over two-thirds of the 28 analysts tracked by FactSet rate Ulta at a Buy or the equivalent, with the remainder rating it at Hold. there are no bearish calls on the stock. The average analyst price target is $261.13.

The stock is down 13% for the year, worse than the 1% drop year to date for the Dow Jones Industrial Average.



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