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e.l.f. Beauty (ELF) Stock Soars on Earnings Beat, Revenue Up 17%

Madeleine Johnson

e.l.f. Beauty Inc. ELF just released its fourth quarter fiscal 2016 earnings results, posting earnings, before non-recurring items, of 17 cents per share and revenues of $76.4 million. Currently, ELF is a #3 (Hold) on the Zacks Rank, and is up 14% to $28.84 per share in trading shortly after its earnings report was released.

Beat earnings estimates. The company reported earnings of 17 cents per share, topping the Zacks Consensus Estimate of 13 cents per share. This number excludes 4 cents from non-recurring items.

Beat revenue estimates. The company saw revenue estimates of $76.4 million, surpassing our consensus estimate of $74 million and increasing 17% year-over-year thanks to sales growth across leading national retailers and e.l.f.’s direct business.

Gross margin expanded to 59% from 54% compared to the fourth quarter of 2015, primarily as a result of margin accretive innovation.

Looking ahead, e.l.f. Beauty expects net sales in the range of $285 million to $295 million for full year 2017, with adjusted net income in the range of $21 million to $23 million and adjusted pro forma diluted EPS in the range of 40 cents to 43 cents.

“We are pleased to report that e.l.f. grew net sales 20% and expanded gross margin by over 500 basis points in 2016,” stated Tarang Amin, Chairman and Chief Executive Officer. “This strong performance reflects progress executing our mission to make luxurious beauty accessible to all women. Our first to mass innovation and authentic brand appeals to some of the best consumers in cosmetics – young, diverse, make-up enthusiasts.”

Here’s a graph that looks at e.l.f. Beauty’s price, consensus, and EPS surprise:

e.l.f. Beauty Inc. Price, Consensus and EPS Surprise

e.l.f. Beauty Inc. Price, Consensus and EPS Surprise | e.l.f. Beauty Inc. Quote

e.l.f. Beauty operates as a cosmetic company. Its cosmetic category primarily consists of face makeup, eye makeup, lip products, nail products and cosmetics sets/kits, excludes beauty tools and accessories, such as brushes and applicators. e.l.f. Beauty is based in Oakland, United States.

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