e.l.f. Beauty, Inc. Quarterly Earnings Report: A Critical Analysis

BofA Securities raised its price target on e.l.f. Beauty (NYSE:ELF) to $135 from $113 while maintaining a Buy rating, pointing to longer-term upside potential despite softer first-quarter expectations.

The firm trimmed its Q1 sales growth estimate to 12% from 15% based on weaker early-quarter scanner data and adjusted its gross margin forecast to 69% from 70%, citing tariff impacts that will only be partially offset by upcoming price hikes set to take effect on August 1. Additionally, non-marketing SG&A is expected to grow faster than sales in the quarter, prompting a downward revision to the firm’s EBITDA estimate for Q1—from $90 million to $69 million.

Despite the short-term drag, BofA remains optimistic about e.l.f.'s trajectory. The analysts anticipate a rebound in sales growth and margin improvement beginning later this year, fueled by higher pricing, ongoing cost efficiencies, and potential supplier concessions. The revised price target reflects confidence in the company’s ability to sustain its category leadership and expand profitability over the medium term.

e.l.f. Beauty, Inc. (NYSE: ELF) is a well-known cosmetics company that offers a wide range of beauty products. It competes with other major players in the beauty industry, such as L'Oréal and Estée Lauder. Over the past year, analysts have adjusted their price targets for ELF, reflecting changes in their expectations for the company's stock performance.

Last month, analysts set an average price target of $95 for ELF, indicating a positive outlook for the company's near-term performance. This optimism may be due to e.l.f. Beauty's ability to gain market share and expand its international presence, as highlighted by its recent activities. Despite challenges like tariffs and fluctuating consumer demand, the company continues to grow its digital channels.

Three months ago, the average price target was $85, showing an upward revision in analysts' expectations. This increase suggests growing confidence in e.l.f. Beauty's performance or market conditions. The company's efforts in inventory management and its focus on profitability could be contributing factors to this positive sentiment.

A year ago, the average price target was significantly higher at $181.11. The substantial decrease over the year may be due to various factors, such as changes in market dynamics or broader economic conditions. Despite this decline, e.l.f. Beauty is rated as a 'hold' with a price target of $75, as there is limited upside potential unless the company raises its fiscal year 2026 guidance above current consensus estimates.

The upcoming Q4 earnings report will be crucial for e.l.f. Beauty, with key areas to watch including fiscal year 2026 revenue guidance and overall profitability outlook. Analysts from D.A. Davidson have set a price target of $77 for the stock. Investors should consider these changes in consensus price targets alongside other factors, such as company news and earnings reports, to make informed decisions about ELF's stock.

e.l.f. Beauty (NYSE:ELF) is a well-known cosmetics company that focuses on providing affordable, high-quality beauty products. The company has carved out a niche in the beauty industry by offering products that are both budget-friendly and effective. e.l.f. Beauty competes with other mass-market and prestige brands, maintaining a competitive edge with its lower price points.

On May 27, 2025, Canaccord Genuity maintained its "Buy" rating for ELF, with the stock priced at $91.72. Analyst Susan Anderson reiterated this rating, setting a price target of $105. e.l.f. Beauty's average unit retail price is approximately $6.50, significantly lower than the mass-market average of over $9. This pricing strategy helps the company maintain its reputation for affordability. Despite the price increase, e.l.f. Beauty remains competitive, offering value to consumers compared to higher-priced prestige brands.

The stock has shown a notable increase of 9.28%, translating to a rise of $7.79. Today, ELF's stock fluctuated between $84.67 and $92.01. Over the past year, the stock reached a high of $219.77 and a low of $49.40, reflecting its volatility. The company's market capitalization is approximately $5.17 billion, with a trading volume of 4,057,519 shares.

E.l.f. Beauty Inc. (NYSE:ELF) is a renowned cosmetics company known for its affordable yet high-quality beauty products. As ELF gears up to release its quarterly earnings on February 6, 2025, analysts and investors are closely watching the company's financial performance. Competing with giants like L'Oréal and Estée Lauder, ELF has carved out a significant niche in the beauty industry.

Wall Street analysts have set the bar with an earnings per share estimate of $0.76 and a projected revenue of approximately $328.21 million. This expected increase in earnings, driven by higher revenues for the quarter ending December 2024, underscores the company's growth trajectory. The forthcoming earnings report, scheduled for February 6, could play a pivotal role in determining ELF's stock price movement in the near term.

A positive earnings surprise could propel the stock upwards, while a miss might trigger a decline. The sustainability of any price changes and future earnings expectations will largely hinge on the management's commentary on business conditions during the earnings call. This discussion is crucial for investors seeking insights into ELF's future prospects.

ELF's financial metrics offer a deeper understanding of its market position. The company's price-to-earnings (P/E) ratio of 52.13 and price-to-sales ratio of 4.62 signal strong investor confidence in its growth potential. Furthermore, the enterprise value to sales ratio of 4.79 and an enterprise value to operating cash flow ratio of 180.39 reflect a significant valuation premium on ELF's sales and cash flow generation capabilities. The earnings yield stands at about 1.92%, indicating the return on investment for shareholders. Additionally, a debt-to-equity ratio of 0.41 and a current ratio of approximately 1.78 suggest a balanced financial structure with adequate liquidity to meet short-term obligations.

E.l.f. Beauty Inc. (NYSE:ELF) is a renowned cosmetics company known for its affordable yet high-quality beauty products. As ELF gears up to release its quarterly earnings on February 6, 2025, analysts and investors are closely watching the company's financial performance. Competing with giants like L'Oréal and Estée Lauder, ELF has carved out a significant niche in the beauty industry.

Wall Street analysts have set the bar with an earnings per share estimate of $0.76 and a projected revenue of approximately $328.21 million. This expected increase in earnings, driven by higher revenues for the quarter ending December 2024, underscores the company's growth trajectory. The forthcoming earnings report, scheduled for February 6, could play a pivotal role in determining ELF's stock price movement in the near term.

A positive earnings surprise could propel the stock upwards, while a miss might trigger a decline. The sustainability of any price changes and future earnings expectations will largely hinge on the management's commentary on business conditions during the earnings call. This discussion is crucial for investors seeking insights into ELF's future prospects.

ELF's financial metrics offer a deeper understanding of its market position. The company's price-to-earnings (P/E) ratio of 52.13 and price-to-sales ratio of 4.62 signal strong investor confidence in its growth potential. Furthermore, the enterprise value to sales ratio of 4.79 and an enterprise value to operating cash flow ratio of 180.39 reflect a significant valuation premium on ELF's sales and cash flow generation capabilities. The earnings yield stands at about 1.92%, indicating the return on investment for shareholders. Additionally, a debt-to-equity ratio of 0.41 and a current ratio of approximately 1.78 suggest a balanced financial structure with adequate liquidity to meet short-term obligations.

e.l.f. Beauty (NYSE:ELF) shares fell more than 3% intra-day on Monday after Piper Sandler analysts lowered their price target for the company from $260 to $162, while maintaining an Overweight rating.

After hosting a dinner and investor meetings with key members of e.l.f.'s leadership during the Growth Frontiers Conference in Nashville, the analysts noted a slight reduction in optimism regarding the potential for a significant fiscal year 2025 beat. The analysts cited macroeconomic challenges and a weaker back-to-school season as contributing factors. Despite these concerns, they remain confident that the higher end of management's projections for both revenue and earnings is still achievable, leaving room for potential upside.

Additionally, Piper Sandler highlighted a disconnect between e.l.f.'s recent valuation trends and the company's demonstrated strength and resilience. The analysts recommend buying into the stock during this period of weakness, given the brand's continued performance and long-term potential.

e.l.f. Beauty (NYSE:ELF) shares fell more than 3% intra-day on Monday after Piper Sandler analysts lowered their price target for the company from $260 to $162, while maintaining an Overweight rating.

After hosting a dinner and investor meetings with key members of e.l.f.'s leadership during the Growth Frontiers Conference in Nashville, the analysts noted a slight reduction in optimism regarding the potential for a significant fiscal year 2025 beat. The analysts cited macroeconomic challenges and a weaker back-to-school season as contributing factors. Despite these concerns, they remain confident that the higher end of management's projections for both revenue and earnings is still achievable, leaving room for potential upside.

Additionally, Piper Sandler highlighted a disconnect between e.l.f.'s recent valuation trends and the company's demonstrated strength and resilience. The analysts recommend buying into the stock during this period of weakness, given the brand's continued performance and long-term potential.