Earnings To Watch: Ulta (ULTA) Reports Q2 Results Tomorrow

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

Ulta met analysts’ revenue expectations last quarter, reporting revenues of $2.73 billion, up 3.5% year on year. It was a slower quarter for the company, with underwhelming earnings guidance for the full year and full-year revenue guidance missing analysts’ expectations.

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 3.4% year on year to $2.61 billion, slowing from the 10.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.48 per share.

Analysts covering the company have generally 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 2.7% on average.

Looking at Ulta’s peers in the specialty retail segment, only Sally Beauty has reported results so far. It beat analysts’ revenue estimates by 1.1%, delivering year-on-year sales growth of 1.2%. The stock traded up 8.4% on the results.

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

Investors in the specialty retail segment have had steady hands going into earnings, with share prices flat over the last month. Ulta is up 1% during the same time and is heading into earnings with an average analyst price target of $452.3 (compared to the current share price of $371.34).

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