Elf Beauty cosmetics
Courtesy: e.l.f Beauty
E.l.f. Beauty reported a huge earnings beat Wednesday and raised its guidance for the fiscal year.
E.l.f. stock was up as much as 15% in after-hours trading before losing the majority of those gains.
Here’s what the company reported for the third fiscal quarter, compared with analyst estimates from LSEG:
- Earnings per share: $1.24 adjusted vs. 72 cents expected
- Revenue: $490 million vs. $460 million expected
E.l.f. said net sales increased 38% to $489.5 million, or $1.24 per share, up from $355 million, or 74 cents a share, in the same period a year ago, driven by growth across the globe and across its retailers and e-commerce. It reported adjusted net income of $74.5 million, up from $43 million over the same period a year ago.
The company recently acquired celebrity Hailey Bieber’s skin-care company, Rhode, in a roughly $1 billion deal, and it contributed $128 million to the company’s net third-quarter sales growth. E.l.f. told CNBC it’s projecting Rhode to contribute up to $265 million in net sales this year, up $65 million from its previous guidance.
E.l.f. also raised its full-year guidance, increasing its revenue outlook by a range of $42 million to $50 million.
“Our Q3 results, which included 130 basis points of market share gains for our namesake e.l.f. Cosmetics brand and a record-breaking launch of rhode in Sephora in the U.K., are a continuation of the consistent, category-leading growth we’ve delivered over the past 28 quarters,” CEO Tarang Amin said in a statement. “Our value proposition, powerhouse innovation and disruptive marketing engine continue to fuel our brands.”
— CNBC’s Jodi Gralnick contributed to this report.
Read the original article here