Ulta Beauty Stock Slides On Q4 Earnings: The Details
Portfolio Pulse from Adam Eckert
Ulta Beauty Inc (NASDAQ:ULTA) reported Q4 earnings with a 10.2% revenue increase to $3.55 billion, surpassing estimates. Earnings per share were $8.08, beating the $7.53 forecast. The company has exceeded analyst expectations for 13 consecutive quarters. Comparable sales rose by 2.5%, with a notable increase in transactions. Operating income grew by 15.5% to $517.1 million. Ulta added 13 new stores, ending the quarter with $766.6 million in cash and repurchased $159.5 million of its stock. A new $2 billion share repurchase program was announced. For FY 2024, Ulta expects revenue between $11.7 billion and $11.8 billion, and earnings per share between $26.20 and $27, both above estimates. Despite the positive report, ULTA shares dropped 5.25% after hours.
March 14, 2024 | 8:45 pm
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Ulta Beauty reported strong Q4 earnings, surpassing revenue and EPS estimates, and announced a new $2 billion share repurchase program. FY 2024 revenue and EPS outlook exceed expectations.
Despite Ulta Beauty's positive earnings report and optimistic outlook for FY 2024, the immediate after-hours stock price reaction was negative, dropping 5.25%. This suggests that market expectations might have been even higher or that investors are reacting to other factors not directly related to the earnings report. The announcement of a new $2 billion share repurchase program indicates confidence from the company's management in its financial health and future prospects, which could have a positive impact on the stock price in the medium to long term. However, the short-term impact appears negative.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100