e.l.f. Beauty (NYSE:ELF) shares surged as much as 18% in premarket Wednesday after the company delivered a set of results and outlook that has been described by analysts as “impressive.”
ELF reported a profit per share of $1.10 on revenue of $216.3 million, easily topping the consensus for earnings of $0.57 on revenue of $184.6M. Net sales surged as much as 76% year-over-year while gross margin came in at 71%, topping the consensus by 190 basis points.
“We are off to a terrific start in our new fiscal year with net sales growth of 76% and market share gains of 260 basis points in Q1. This marks our 18th consecutive quarter of delivering both net sales growth and market share gains. We are one of only five publicly traded consumer companies out of 274 that has grown for 18 straight quarters and averaged at least 20% sales growth per quarter over that period,” said Tarang Amin, e.l.f. Beauty's chairman and chief executive officer.
“As we look ahead, we believe we are in the early innings of unlocking the full potential we see for e.l.f. Beauty and are raising our fiscal 2024 outlook to reflect our continued momentum.”
For FY24, ELF sees EPS in the range of $2.19-$2.22 on revenue of $797M, crushing the consensus for earnings of $1.83 per share on revenue of $728M.
BofA analysts hiked the price target by $35 to $155 per share on ELF stock.
“ELF is the number-one mass cosmetics brand at Target with 18% market share. Other retailers continue to see expansion but may be 4-5 years behind Target’s embrace of ELF. Innovation fuels growth, with expansion of franchises such as 'Suntouchable', where ELF has just 1.5% market share but is the fastest growing mass brand in skincare. International is a further untapped opportunity as ELF expands in the U.K. and Canada,” the analysts said.
Oppenheimer analysts said Q2 marked “another blowout quarter from ELF.”
“Even with this major guidance raise, the new range appears conservative to us, implying a significant moderation in top-line momentum. ELF shares remain on our radar, and we have continued to under-estimate the recent sales boom and market share gains. The ELF management team continues to execute at a very high level,” they said.