Shares of e.l.f. Beauty Inc (NYSE:ELF) rallied in Tuesday’s pre-market session after the cosmetics company crushed Wall Street’s estimates for its third-quarter results and lifted its yearly guidance.
In its latest quarter, e.l.f. posted earnings of $3.9 million or $0.08 per share, compared with $5.9 million, or $0.12 per share in the year-ago period. Stripping out items, e.l.f. posted profits of $8.4 million, or $0.17 per share on revenue of $63.9 million.
Its revenue was down 11% or $8 million from the year-ago quarter due partly to a fall in sales to discount channel customers as well as a number of bigger shipments last year.
But the results still zipped past the expectations of analysts who had predicted e.l.f. would see earnings of $0.08 per share on sales of $60 million.
In response, investors sent e.l.f. shares up nearly 19% to $13.20 before the market open on Tuesday.
Looking ahead, e.l.f. now projects its earnings per share for fiscal 2018 will fall at the higher end of its previously announced guidance and come in at $0.59 to $0.61, up from its previous range of $0.56 to $0.61. e.l.f. now forecasts adjusted net income for fiscal 2018 of $30 million to $31 million, up from its prior forecast of $28 million to $31 million.
“Our third-quarter results reaffirm our confidence in our 2018 guidance. We delivered growth in the specialty channel and demonstrated disciplined expense and balance sheet management,” noted CEO Tarang Amin in a statement. “We are aggressively pursuing three strategic initiatives to improve business trends in tracked channels: thoughtfully increasing investment in the e.l.f. brand, focusing on key items and optimizing 2019 shelf sets.”
Set up 14 years ago as an e-commerce business, e.l.f., which is based in Oakland, California, now also sells its cosmetics products via its network of retail stores and bigger outlets like Target and Walmart.
Contact Ellen Kelleher at [email protected]