e.l.f. Beauty (NYSE:ELF) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• e.l.f. Beauty shares jumped after the company reported better-than-expected quarterly results, opening well above the prior close in premarket trading.
• The company posted adjusted EPS of $0.32 versus $0.29 expected and revenue of $449.29 million versus $423.06 million expected, with sales up 35.1% year over year.
• Despite the earnings beat, fiscal 2027 guidance disappointed Wall Street, and management warned that higher oil prices tied to the Iran war could reduce results by $15 million to $20 million.

Shares of e.l.f. Beauty (NYSE:ELF - Get Free Report) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $50.72, but opened at $54.06. e.l.f. Beauty shares last traded at $51.5060, with a volume of 2,658,234 shares.

The company reported $0.32 earnings per share for the quarter, beating the consensus estimate of $0.29 by $0.03. e.l.f. Beauty had a return on equity of 15.08% and a net margin of 6.84%.The company had revenue of $449.29 million during the quarter, compared to analysts' expectations of $423.06 million. During the same period in the prior year, the business earned $0.78 earnings per share. e.l.f. Beauty's revenue for the quarter was up 35.1% compared to the same quarter last year. e.l.f. Beauty has set its FY 2027 guidance at 3.270-3.320 EPS.

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 beat fourth-quarter estimates, reporting adjusted EPS of $0.32 versus $0.29 expected and revenue of $449.29 million versus $423.06 million expected, with sales up 35.1% year over year. Article Title
• Positive Sentiment: Management said fiscal 2026 marked the company’s seventh straight year of net sales and market share growth, helped by strong performance from rhode and Naturium. Article Title
• Neutral Sentiment: Bank of America lowered its price target on ELF to $85 from $93 but kept a Buy rating, still implying meaningful upside from current levels. Article Title
• Negative Sentiment: Guidance for fiscal 2027 came in below Street expectations, with EPS guidance of $3.27-$3.32 versus $3.37 expected and revenue guidance of about $1.8 billion-$1.9 billion versus about $1.9 billion expected. Article Title
• Negative Sentiment: The company warned that higher oil prices tied to the Iran war could cut fiscal 2027 results by $15 million to $20 million, adding pressure to the outlook. Article Title
• Negative Sentiment: Management also said it plans to cut some prices to support demand as cost-conscious shoppers pull back, which may pressure margins in the near term. Article Title

Analysts Set New Price Targets

Several research firms have recently issued reports on ELF. JPMorgan Chase & Co. dropped their price objective on shares of e.l.f. Beauty from $105.00 to $85.00 and set an "overweight" rating on the stock in a report on Friday, April 17th. Jefferies Financial Group reissued a "buy" rating and set a $70.00 target price on shares of e.l.f. Beauty in a research report on Thursday. Piper Sandler lowered their price target on e.l.f. Beauty from $60.00 to $50.00 and set a "neutral" rating on the stock in a research note on Thursday. Morgan Stanley cut their price target on e.l.f. Beauty from $67.00 to $59.00 and set an "equal weight" rating for the company in a report on Thursday. Finally, Weiss Ratings downgraded e.l.f. Beauty from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, May 4th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, e.l.f. Beauty has an average rating of "Moderate Buy" and a consensus target price of $94.94.

Insider Activity at e.l.f. Beauty

In related news, insider Kory Marchisotto sold 23,796 shares of the company's stock in a transaction dated Monday, April 27th. The shares were sold at an average price of $63.66, for a total value of $1,514,853.36. Following the sale, the insider owned 152,417 shares of the company's stock, valued at $9,702,866.22. The trade was a 13.50% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Tarang Amin sold 52,880 shares of the stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $62.64, for a total transaction of $3,312,403.20. Following the completion of the transaction, the chief executive officer directly owned 98,416 shares of the company's stock, valued at $6,164,778.24. This trade represents a 34.95% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 210,013 shares of company stock worth $13,315,490 in the last ninety days. Company insiders own 3.90% of the company's stock.

Institutional Trading of e.l.f. Beauty

Institutional investors have recently bought and sold shares of the stock. Migdal Insurance & Financial Holdings Ltd. bought a new position in shares of e.l.f. Beauty during the fourth quarter valued at $26,000. Hilton Head Capital Partners LLC bought a new stake in shares of e.l.f. Beauty in the 4th quarter worth about $32,000. EverSource Wealth Advisors LLC increased its position 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 purchasing an additional 128 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its position in shares of e.l.f. Beauty by 58.5% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 317 shares of the company's stock worth $39,000 after purchasing an additional 117 shares in the last quarter. Finally, Arax Advisory Partners bought a new position in e.l.f. Beauty during the 4th quarter valued at about $41,000. Institutional investors and hedge funds own 92.44% of the company's stock.

e.l.f. Beauty Stock Up 1.6%

The stock has a market capitalization of $3.04 billion, a P/E ratio of 29.12, a P/E/G ratio of 3.26 and a beta of 1.71. The company has a current ratio of 2.76, a quick ratio of 1.89 and a debt-to-equity ratio of 0.70. The firm's fifty day moving average is $64.64 and its 200-day moving average is $76.45.

About e.l.f. Beauty

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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