Shares of e.l.f. Beauty (NYSE:ELF) surged in trading after the company’s Fiscal Q4 results blew past estimates. The cosmetics brand reported adjusted earnings of $0.53 per share in the Fiscal Q4 as compared to earnings of $0.42 per share in the same period last year. This was above consensus estimates of $0.35 per share.
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The company’s net sales surged by 71% year-over-year to $321.1 million in Q4 and surpassed Street estimates of $293.2 million. More importantly, in FY24, the cosmetics brand clocked revenues of $1 billion, a jump of 77% year-over-year.
e.l.f. Beauty’s FY25 Outlook
In FY25, ELF expects to generate revenues between $1.23 billion and $1.25 billion with adjusted earnings likely to be in the range of $3.2 to $3.25 per diluted share. For reference, analysts were expecting $1.27 billion in revenue along with an adjusted EPS of $3.51.
Piper Sandler Analyst Remains Bullish on ELF
Following ELF’s stellar Q1 earnings, Piper Sandler analyst Korinne Wolfmeyer reiterated a Buy on the stock but reduced the price target to $210 from $216. The analyst’s new price target implies an upside potential of 16.9% at current levels.
The analyst views e.l.f. Beauty as a top pick following strong quarterly results and believes there is significant growth potential despite the lighter FY25 guidance. Wolfmeyer advises buying ELF shares due to healthy margins and returns.
Is ELF a Good Stock to Invest In?
Analysts remain bullish about ELF stock, with a Strong Buy consensus rating based on seven Buys and two Holds. Over the past year, ELF has surged by more than 80%, and the average ELF price target of $204.13 implies an upside potential of 31.2% from current levels.
