The 10-second takeaway
For the quarter ended Feb. 2 (Q4), Ulta met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share increased significantly.
Margins increased across the board.
Ulta chalked up revenue of $758.8 million. The 12 analysts polled by S&P Capital IQ expected revenue of $752.7 million on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $582.5 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 $1.00. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.98 per share. GAAP EPS of $1.00 for Q4 were 37% higher than the prior-year quarter's $0.73 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 34.2%, 10 basis points better than the prior-year quarter. Operating margin was 13.7%, 110 basis points better than the prior-year quarter. Net margin was 8.5%, 60 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $574.7 million. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $2.67 billion. The average EPS estimate is $3.41.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 320 members out of 367 rating the stock outperform, and 47 members rating it underperform. Among 109 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 97 give Ulta a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ulta is outperform, with an average price target of $113.63.
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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. The Motley Fool recommends Ulta Salon, Cosmetics & Fragrance. The Motley Fool owns shares of Ulta Salon, 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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