e.l.f. Beauty (NYSE:ELF) Posts Quarterly Earnings Results, Beats Expectations By $1.04 EPS

Key Points

• e.l.f. Beauty beat quarterly expectations, reporting adjusted EPS of $1.75 versus the $0.71 consensus and revenue of $479.4 million, up 35.5% year over year.
• Management raised fiscal 2027 guidance to 18%–20% revenue growth and adjusted EPS of $3.50–$3.55, citing momentum across e.l.f., Naturium, and acquired brand Rhode.
• Rhode drove significant growth, contributing about $160 million in quarterly sales, but investors remain cautious because tariff refunds boosted margins and unit volumes declined roughly 3%.

e.l.f. Beauty (NYSE:ELF - Get Free Report) issued its earnings results on Wednesday. The company reported $1.75 earnings per share for the quarter, beating the consensus estimate of $0.71 by $1.04, FiscalAI reports. e.l.f. Beauty had a net margin of 1.61% and a return on equity of 11.02%. The business had revenue of $479.37 million for the quarter, compared to the consensus estimate of $433.97 million. During the same quarter in the previous year, the firm earned $0.89 earnings per share. The business's quarterly revenue was up 35.5% compared to the same quarter last year. e.l.f. Beauty updated its FY 2027 guidance to 3.500-3.550 EPS.

Here are the key takeaways from e.l.f. Beauty's conference call:

• Q1 net sales rose 36%, marking e.l.f. Beauty’s 30th consecutive quarter of growth. Adjusted EBITDA increased 93% year over year, although results benefited from approximately $50 million in tariff refunds.
• Management raised fiscal 2027 guidance to 18%–20% net sales growth, adjusted EBITDA of $401 million–$407 million, and adjusted EPS of $3.50–$3.55, citing improving trends across e.l.f., Naturium, and Rhode.
• Rhode continued to materially outperform expectations, contributing approximately $160 million in Q1 sales and generating $27 million in direct-to-consumer sales in one day. The brand is scheduled to expand into Sephora across 19 European countries in September.
• The company is expanding its growth runway through e.l.f. Hair, international distribution, and new retail placements, including Boots in the U.K., Sephora Brazil, Dollar General for e.l.f. Skin, and Sephora Canada and Mexico for Naturium.
• Unit volumes declined approximately 3% in Q1, and management plans to reinvest the tariff refund through lower prices on about 10% of e.l.f. SKUs and higher marketing spending. Gross-margin benefits from the refund are therefore expected to be fully reinvested, while Rhode’s shift toward retail is expected to create mix pressure.

e.l.f. Beauty Price Performance

ELF traded down $0.83 on Wednesday, hitting $87.01. 5,062,330 shares of the company were exchanged, compared to its average volume of 2,295,668. The firm has a market capitalization of $5.13 billion, a P/E ratio of 189.16, a price-to-earnings-growth ratio of 3.42 and a beta of 1.58. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.69 and a current ratio of 2.35. The business's fifty day moving average is $69.81 and its 200 day moving average is $71.54. e.l.f. Beauty has a fifty-two week low of $48.82 and a fifty-two week high of $150.99.

Wall Street Analysts Forecast Growth

ELF has been the subject of a number of recent analyst reports. UBS Group raised their price objective on shares of e.l.f. Beauty from $60.00 to $80.00 and gave the company a "neutral" rating in a research report on Thursday, July 16th. The Goldman Sachs Group reiterated a "buy" rating and set a $95.00 target price on shares of e.l.f. Beauty in a research report on Monday, July 27th. Bank of America cut their target price on e.l.f. Beauty from $93.00 to $85.00 and set a "buy" rating for the company in a research note on Thursday, May 21st. TD Cowen reissued a "buy" rating and issued a $85.00 price target (up from $65.00) on shares of e.l.f. Beauty in a report on Tuesday, July 21st. Finally, Robert W. Baird decreased their price target on e.l.f. Beauty from $115.00 to $90.00 and set an "outperform" rating on the stock in a research note on Tuesday, April 28th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $83.06.

Key Stories Impacting e.l.f. Beauty

Here are the key news stories impacting e.l.f. Beauty this week:

• Positive Sentiment: e.l.f. Beauty reported fiscal Q1 2027 revenue of $479.4 million, up 35.5% year over year and above the $434.0 million analyst estimate. Adjusted earnings were $1.75 per share, versus the $0.71 consensus and $0.89 a year earlier. e.l.f. Beauty Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: Management raised fiscal 2027 revenue-growth guidance to 18%–20%, from 12%–14%, and set EPS guidance at $3.50–$3.55, above the $3.12 consensus. The company cited continued momentum across its portfolio, including the acquired Rhode brand. e.l.f. Beauty Fiscal 2027 Results
• Neutral Sentiment: Rhode helped power growth, with sales benefiting from Hailey Bieber’s brand, but investors remain focused on whether e.l.f.’s legacy namesake business can reaccelerate after earlier price increases pressured unit volumes. Hailey Bieber's Rhode Powers e.l.f. Beauty's Sales Growth
• Negative Sentiment: Approximately $50 million of tariff refunds contributed to a roughly 14-percentage-point gross-margin improvement and nearly doubled net income. Because the refunds are viewed as nonrecurring, traders questioned the durability and quality of the reported profit surge. e.l.f. Beauty Tariff Refunds and Q1 Profits
• Negative Sentiment: Leverage remains elevated following the Rhode acquisition, with total debt of about $834 million at quarter-end. In addition, recent insider activity was heavily weighted toward selling, while the median analyst price target cited by Quiver Quantitative was $70, below the current trading level.

Insider Buying and Selling at e.l.f. Beauty

In other e.l.f. Beauty news, insider Kory Marchisotto sold 4,352 shares of the stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $51.53, for a total transaction of $224,258.56. Following the sale, the insider owned 181,868 shares in the company, valued at approximately $9,371,658.04. This represents a 2.34% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Jennifer Catherine Hartnett sold 25,357 shares of the stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $80.00, for a total value of $2,028,560.00. Following the sale, the insider directly owned 28,699 shares in the company, valued at approximately $2,295,920. The trade was a 46.91% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 121,855 shares of company stock worth $8,351,493. 3.50% of the stock is currently owned by insiders.

Institutional Trading of e.l.f. Beauty

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC lifted its holdings in shares of e.l.f. Beauty by 97.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 260 shares of the company's stock worth $32,000 after acquiring an additional 128 shares during the period. Northwestern Mutual Wealth Management Co. grew its holdings in e.l.f. Beauty by 58.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 317 shares of the company's stock valued at $39,000 after purchasing an additional 117 shares during the period. Arax Advisory Partners acquired a new position in e.l.f. Beauty during the fourth quarter worth approximately $41,000. Ankerstar Wealth LLC acquired a new position in e.l.f. Beauty during the fourth quarter worth approximately $42,000. Finally, Johnson Financial Group Inc. purchased a new position in e.l.f. Beauty during the third quarter worth approximately $64,000. Hedge funds and other institutional investors own 92.44% of the company's stock.

e.l.f. Beauty Company Profile

e.l.f. Beauty NYSE: ELF is an American cosmetics company known for offering an extensive range of affordable, trend-driven makeup and skincare products. The company's portfolio spans foundations, lipsticks, mascaras, brushes, serums, masks and other beauty essentials, all positioned at accessible price points. e.l.f. Beauty maintains a direct-to-consumer platform through its e-commerce site and engages in widespread retail partnerships with major chains such as Target, Walmart, Ulta Beauty and Amazon.

Founded in 2004 and headquartered in Oakland, California, e.l.f.

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