E.L.F. Beauty (NYSE: $ELF) Jumped 22% on Q1 Earnings Results

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Cosmetics company e.l.f. Beauty (NYSE:ELF) reported first-quarter earnings results that surpassed analysts' EPS expectations and revenue by 71% YoY. The company surpassed the 11B annual sales milestone in FY'24, but its operating margin missed analysts' expectations and its full-year revenue and earnings guidance missed Wall Street's estimates. ELF Beauty provided conservative guidance partly due to concerns about macro uncertainty, with the FY'25 sales forecast implying 21.1% growth.

Analysts at William Blair and Bank of America highlighted a "meaningful" Q4 sales beat, viewing guidance for fiscal 2025 as likely conservative due to disciplined management and strong sales quarter to date. Total sales growth of 71% was driven by volume (up 50%) and price/mix (higher by 21%) and was broad based across categories (cosmetics, skin care) and channels (national retailers and digital).

ELF Beauty (ELF) forecasted EPS of $3.20-$3.25 in fiscal 2025, rising from $3.18 in fiscal 2024. The company guided revenue of $1.23 billion-$1.25 billion, also below views but up from $1.024 billion in fiscal 2024. ELF Beauty's fiscal year ends in March.

Shares of the cosmetics company rocketed 18.8%, reaching 184.64 in big volume on the stock market today. ELF Beauty stock (ELF) recovered the 50-day line for the first time since a broad beauty stock sell-off in April. The Relative Strength Index (RSI) which sits at 61.53 also bolted higher Thursday after lagging since March. Target issued a reassuring note on beauty sales while issuing a glum earnings report, stating shoppers bought beauty items but less of other discretionary items, such as apparel and home products.