Ulta Earnings: What To Look For From ULTA

Beauty, cosmetics, and personal care retailer Ulta Beauty (NASDAQ:ULTA) will be reporting results tomorrow after market close. Here's what to look for.

Ulta met analysts' revenue expectations last quarter, reporting revenues of $3.55 billion, up 10.2% year on year. It was a mixed quarter for the company: Ulta beat analysts' same store sales, revenue, and gross margin expectations. In addition, its EPS outperformed Wall Street's estimates. On the other hand, while full year revenue guidance was roughly in line, its full-year earnings forecast was underwhelming and missed.

Is Ulta a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Ulta's revenue to grow 3.5% year on year to $2.73 billion, slowing from the 12.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $6.28 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Ulta has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 4% on average.

Looking at Ulta's peers in the specialty retail segment, only Sally Beauty has reported results so far. It met analysts' revenue estimates, posting year-on-year sales declines of 1.1%. The stock was down 1.4% on the results.

Read our full analysis of Sally Beauty's earnings results here.

There has been positive sentiment among investors in the specialty retail segment, with share prices up 9.3% on average over the last month. Ulta is down 5.8% during the same time and is heading into earnings with an average analyst price target of $506.4 (compared to the current share price of $381.29).

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