e.l.f Beauty Delivers Solid Q4 Results; Shares Pop 4%


e.l.f Beauty, Inc. (ELF), a cosmetic and skin-care products company, delivered better-than-expected Q4 results driven by increased sales across e-commerce, international, and national retailers. Shares popped 4.1% to close at $29.65 on May 26.

Net sales for the quarter were up 24% at $92.67 million, versus Street estimates of $81.97 million.

Adjusted earnings stood at $0.16 per share, an increase of 60% year-over-year. The Street estimated earnings of $0.10 per share.

On an annual basis, net sales were up 12% at $318.11 million and adjusted earnings were up 12.7% at $0.71 per share. (See e.l.f Beauty stock analysis on TipRanks)

Commenting on the company’s robust performance, Tarang Amin, Chairman, and CEO said, “Our fiscal 2021 results demonstrate that our business model and competitive advantages are robust, as we strengthened our position in a challenging environment…Our fourth quarter net sales growth of 24% marked our ninth consecutive quarter of growth. For the year, e.l.f. Cosmetics was the only top 5 U.S. color cosmetics brand to post growth and gain share.”

Looking ahead, the company projects FY22 net sales to be in the range of $343 to $350 million and adjusted earnings of between $0.64 and $0.67 per share.

The Street estimates net sales and earnings of $307.8 million and $0.64 per share respectively.

Following the Q4 results, Oppenheimer analyst Rupesh Parikh reiterated a Hold rating on the stock and said, “Longer term, we continue to look very favorably upon ELF’s prospects and are increasingly confident in the company’s ability to deliver on its longer-term algorithm. However, as we look out the next few quarters, although we see a strengthening fundamental backdrop, valuation keeps us sidelined. Key upside drivers we remain focused on from here include the pace of recovery in the makeup category and the ramping of Keys Soulcare in coming years.”

Consensus among analysts is a Strong Buy based on 6 Buys and 2 Holds. The average analyst price target stands at $32.79 and implies upside potential of around 14% to current levels. Shares have gained 71.4% over the past year.

TipRanks data shows that financial blogger opinions are 75% Bullish on ELF, compared to a sector average of 69%.

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