ELF Beauty (ELF) hiked earnings outlook above consensus late Wednesday after crushing lofty estimates for its fiscal second quarter. ELF Beauty stock surged in premarket trading.
Market analysts had initially projected that ELF Beauty’s earnings would increase by 46% to reach 53 cents per share, according to data from FactSet. They also anticipated a 61% year-over-year revenue growth, with revenue expected to reach $197.1 million.
However, the actual results surpassed expectations as ELF Beauty reported a more than doubled earnings figure of 82 cents per share. Additionally, the company’s revenue surged by 76% to $215.5 million, attributed to robust sales in both retail and e-commerce channels.
Looking ahead, for fiscal year 2024, ELF Beauty provided an optimistic outlook. The company revised its earnings per share (EPS) guidance to a range of $2.47 to $2.50, a significant increase from its previous guidance of $2.19 to $2.22.
ELF Beauty’s stock exhibited a remarkable premarket surge of nearly 15%. This followed a previous day’s uptick of 2.1%, with the closing price settling at 94.54 on Wednesday. This positive trend marked a reversal from earlier in the week when ELF Beauty’s stock had experienced a 10.2% decline, dipping below its 200-day moving average. The company, well-known for its popularity among millennials and Gen Zers, faced a temporary setback as one analyst expressed concerns about a potential slowdown.
The consumer discretionary stock had been on a downtrend since September, partly influenced by broader market conditions. However, the premarket activity on Thursday suggested that the stock might regain its momentum by surpassing both its 200-day moving average and re-establishing itself above certain short-term technical support levels. outlook above consensus
At the close of the market on Wednesday, ELF Beauty stock had still managed to maintain an impressive 66% gain from its breakout in January, surpassing the 56.92 flat-base buy point, as indicated by the MarketSmith chart.