Why Ulta Beauty's Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of beauty products retailer Ulta Beauty (Nasdaq: ULTA  ) jumped 10% today after the company released a strong earnings report.

So what: Ulta reported first-quarter sales of $474.1 million and earnings per share of $0.54. Both results were slightly above expectations, which were $473.9 million in revenue and earnings per share of $0.53.

Now what: Oppenheimer reiterated an outperform rating and increased its price target to $100, helping drive the stock today, but I'm not sure what analysts are seeing here. Results were barely better than estimates, and the stock still trades at 30 times forward earnings estimates. I'd like to see a lot more growth or a lot better value before jumping into this stock.

Interested in more info on Ulta Beauty? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

Motley Fool newsletter services have recommended buying shares of Ulta Beauty. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (2) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 06, 2012, at 3:24 PM, Awebb30 wrote:

    Ulta also raised guidance and upped the target number of stores they intend to open from 1000 to 1200.

  • Report this Comment On June 08, 2012, at 1:57 AM, Risky88 wrote:

    Came out 2-4 weeks ago raising guidance from like .48 to .53. Fact that they still beat their own raised guidance in only short amount of time, is why it gets the attention it should.

    p/e means nothing when your paying for future growth, everyone knows that.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1904963, ~/Articles/ArticleHandler.aspx, 10/26/2014 3:45:25 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement