Things to Note as Ulta Beauty (ULTA) Lines Up for Q3 Earnings
Ulta Beauty, Inc. ULTA is likely to register top and bottom-line growth when it reports third-quarter fiscal 2022 earnings on Dec 1. The Zacks Consensus Estimate for quarterly revenues is pegged at $2,185 million, suggesting a rise of 9.9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has risen by a couple of cents in the past seven days to $4.10 per share, which indicates 4.1% growth from the figure reported in the prior-year quarter. The beauty product company has a trailing four-quarter earnings surprise of 32.8%, on average. ULTA delivered an earnings surprise of 14.9% in the last reported quarter.
Ulta Beauty Inc. Price and EPS Surprise
Ulta Beauty Inc. price-eps-surprise | Ulta Beauty Inc. Quote
Things To Note
Ulta Beauty is benefiting from its omnichannel strength. The company has been enriching its omnichannel experience via launches like Beauty to Go, options like same-day delivery and unique salon services across stores, among others. Its buy online, pick up in-store (BOPIS) is also gaining traction.
Ulta Beauty has been seeing market share gains in major beauty categories for a while now, with skincare standing out. Guests’ increased focus on self-care and maintaining healthy skincare routines has been working well for the skincare category. The persistence of these upsides is likely to have worked well in the third quarter of fiscal 2022.
That being said, Ulta Beauty is witnessing high supply-chain costs due to elevated freight costs and wage expenses across its distribution centers. The company is grappling with rising selling, general and administrative (SG&A) expenses for a while. We believe that the persistence of such high costs might have been a headwind inthe quarter to be reported.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Ulta Beauty this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Ulta Beauty currently carries a Zacks Rank #3 and has an Earnings ESP of -0.17%.
Stocks With Favorable Combination
Here are three companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Dollar General DG currently has an Earnings ESP of +1.58% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of $2.55 suggests an increase of 22.6% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar General’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.43 billion, which suggests a rise of 10.7% from the figure reported in the prior-year quarter. DG delivered an earnings beat of 2.2%, on average, in the trailing four quarters.
Kroger KR currently has an Earnings ESP of +1.95% and a Zacks Rank #3. The company will likely register an increase in the bottom line when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of 80 cents suggests an increase of 2.6% from the year-ago quarter.
Kroger’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $34 billion, which suggests a rise of 6.7% from the figure reported in the prior-year quarter. KR delivered an earnings beat of 15.7%, on average, in the trailing four quarters.
Casey's General Stores CASY currently has an Earnings ESP of +12.58% and a Zacks Rank #3. The company is expected to register a bottom-line increase when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for the quarterly earnings per share of $3.10 suggests an increase of 19.7% from the year-ago quarter.
Casey's General’s top line is anticipated to rise year over year. The consensus mark for CASY’s revenues is pegged at $4.16 billion, indicating an increase of 27.5% from the figure reported in the year-ago quarter. Casey's General has a trailing four-quarter earnings surprise of 1.3%, on average.
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Dollar General Corporation (DG) : Free Stock Analysis Report
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Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
