Sally Beauty Holdings
The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Sally Beauty Holdings met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.
Gross margins expanded, operating margins grew, net margins dropped.
Sally Beauty Holdings chalked up revenue of $864.8 million. The eight analysts polled by S&P Capital IQ looked for revenue of $856.8 million. Sales were 9.0% higher than the prior-year quarter's $793.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.29. The eight earnings estimates compiled by S&P Capital IQ predicted $0.27 per share on the same basis. GAAP EPS of $0.16 for Q1 were 27% lower than the prior-year quarter's $0.22 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 48.8%, 100 basis points better than the prior-year quarter. Operating margin was 13.1%, 140 basis points better than the prior-year quarter. Net margin was 3.5%, 170 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $858.3 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $3.50 billion. The average EPS estimate is $1.27.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 127 members out of 139 rating the stock outperform, and 12 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give Sally Beauty Holdings a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sally Beauty Holdings is outperform, with an average price target of $22.40.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.