Ulta Salon, Cosmetics & Fragrance
The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Ulta Salon, Cosmetics & Fragrance met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share improved significantly.
Margins improved across the board.
Ulta Salon, Cosmetics & Fragrance recorded revenue of $582.5 million. The seven analysts polled by S&P Capital IQ predicted revenue of $578.5 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $473.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.73. The nine earnings estimates compiled by S&P Capital IQ predicted $0.67 per share. GAAP EPS of $0.73 for Q4 were 49% higher than the prior-year quarter's $0.49 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.1%, 100 basis points better than the prior-year quarter. Operating margin was 12.6%, 230 basis points better than the prior-year quarter. Net margin was 7.9%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $459.2 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $2.11 billion. The average EPS estimate is $2.32.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 211 members out of 253 rating the stock outperform, and 42 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Ulta Salon, Cosmetics & Fragrance a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ulta Salon, Cosmetics & Fragrance is outperform, with an average price target of $79.29.
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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. Motley Fool newsletter services have recommended buying shares of Ulta Salon and Cosmetics & Fragrance. 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.
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