Sally Beauty (NYSE:SBH) Releases Quarterly Earnings Results, Beats Expectations By $0.09 EPS

Key Points

• Sally Beauty reported a quarterly EPS of $0.51, exceeding analysts' expectations of $0.42 by $0.09.
• The company's revenue for the quarter was $933.31 million, slightly above the expected $928.78 million, although it represented a 1.0% year-over-year decline.
• Despite strong earnings, Wall Street analysts have adjusted their ratings, with one analyst downgrading the stock from a "buy" to a "hold" rating, leading to an average target price of $12.63.

Sally Beauty (NYSE:SBH - Get Free Report) released its quarterly earnings results on Tuesday. The specialty retailer reported $0.51 earnings per share for the quarter, beating the consensus estimate of $0.42 by $0.09, Zacks reports. The company had revenue of $933.31 million for the quarter, compared to analyst estimates of $928.78 million. Sally Beauty had a return on equity of 28.11% and a net margin of 5.26%. Sally Beauty's quarterly revenue was down 1.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.45 EPS. Sally Beauty updated its FY 2025 guidance to EPS.

Sally Beauty Trading Down 0.6%

SBH stock traded down $0.07 during trading on Friday, hitting $11.68. The company had a trading volume of 165,901 shares, compared to its average volume of 2,111,596. Sally Beauty has a 52-week low of $7.54 and a 52-week high of $14.79. The company has a 50 day simple moving average of $9.59 and a 200-day simple moving average of $9.25. The firm has a market capitalization of $1.16 billion, a P/E ratio of 6.28 and a beta of 1.30. The company has a quick ratio of 0.44, a current ratio of 2.41 and a debt-to-equity ratio of 1.16.

Institutional Investors Weigh In On Sally Beauty

Several large investors have recently added to or reduced their stakes in SBH. Royal Bank of Canada boosted its holdings in shares of Sally Beauty by 150,390.9% in the first quarter. Royal Bank of Canada now owns 33,108 shares of the specialty retailer's stock valued at $299,000 after purchasing an additional 33,086 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Sally Beauty by 3.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 60,595 shares of the specialty retailer's stock valued at $547,000 after purchasing an additional 2,026 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Sally Beauty by 10.6% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 324,906 shares of the specialty retailer's stock worth $2,934,000 after buying an additional 31,040 shares during the period. Finally, AQR Capital Management LLC grew its position in shares of Sally Beauty by 53.7% during the 1st quarter. AQR Capital Management LLC now owns 476,966 shares of the specialty retailer's stock worth $4,188,000 after buying an additional 166,637 shares in the last quarter.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the stock. Wall Street Zen downgraded shares of Sally Beauty from a "buy" rating to a "hold" rating in a research note on Thursday, May 22nd. Canaccord Genuity Group increased their price objective on shares of Sally Beauty from $14.00 to $15.00 and gave the stock a "buy" rating in a research report on Wednesday. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and two have issued a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $12.88.

Sally Beauty Company Profile

Sally Beauty Holdings, Inc operates as a specialty retailer and distributor of professional beauty supplies. The company operates through two segments, Sally Beauty Supply and Beauty Systems Group. The Sally Beauty Supply segment offers beauty products, including hair color and care products, skin and nail care products, styling tools, and other beauty products for retail customers, salons, and salon professionals.