Sally Beauty (NYSE:SBH) Issues Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Sally Beauty reported quarterly EPS of $0.55, exceeding analyst expectations of $0.53 by $0.02. The company posted a 4.93% net margin and 24.95% return on equity.
• SBH shares opened at $14.94 and were trading down 0.2%, with a market capitalization of approximately $1.43 billion and a price-to-earnings ratio of 8.25.
• Analyst sentiment remains mixed: three analysts rate the stock Buy, three Hold and one Sell, resulting in an overall “Hold” consensus and an average price target of $17.00.

Sally Beauty (NYSE:SBH - Get Free Report) posted its quarterly earnings results on Monday. The specialty retailer reported $0.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.53 by $0.02, FiscalAI reports. Sally Beauty had a net margin of 4.93% and a return on equity of 24.95%.

Sally Beauty Trading Down 0.2%

Shares of SBH opened at $14.94 on Monday. The stock has a fifty day moving average price of $13.95 and a two-hundred day moving average price of $14.39. The company has a debt-to-equity ratio of 0.98, a quick ratio of 0.55 and a current ratio of 2.34. Sally Beauty has a 52-week low of $9.36 and a 52-week high of $17.92. The company has a market cap of $1.43 billion, a price-to-earnings ratio of 8.25 and a beta of 1.02.

Insider Buying and Selling

In other news, CFO Marlo Michelle Cormier Platz sold 42,771 shares of the stock in a transaction on Monday, June 8th. The stock was sold at an average price of $12.70, for a total transaction of $543,191.70. Following the sale, the chief financial officer owned 138,145 shares in the company, valued at approximately $1,754,441.50. This represents a 23.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 2.00% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in SBH. State of Tennessee Department of Treasury increased its position in Sally Beauty by 5.2% in the 4th quarter. State of Tennessee Department of Treasury now owns 49,290 shares of the specialty retailer's stock valued at $750,000 after acquiring an additional 2,424 shares in the last quarter. EP Wealth Advisors LLC acquired a new position in shares of Sally Beauty during the fourth quarter worth approximately $160,000. Empowered Funds LLC grew its stake in shares of Sally Beauty by 4.0% during the fourth quarter. Empowered Funds LLC now owns 463,127 shares of the specialty retailer's stock valued at $6,604,000 after purchasing an additional 18,011 shares during the last quarter. XTX Topco Ltd grew its stake in shares of Sally Beauty by 51.0% during the fourth quarter. XTX Topco Ltd now owns 75,842 shares of the specialty retailer's stock valued at $1,082,000 after purchasing an additional 25,628 shares during the last quarter. Finally, Susquehanna Portfolio Strategies LLC acquired a new stake in shares of Sally Beauty in the fourth quarter valued at approximately $143,000.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on SBH shares. Weiss Ratings upgraded Sally Beauty from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, July 28th. Wall Street Zen upgraded Sally Beauty from a "hold" rating to a "buy" rating in a research report on Saturday, June 13th. Morgan Stanley decreased their price target on Sally Beauty from $16.00 to $13.00 and set an "underweight" rating on the stock in a research note on Tuesday, May 12th. Finally, TD Cowen lowered their price target on Sally Beauty from $20.00 to $17.00 and set a "buy" rating on the stock in a research report on Tuesday, May 12th. Three analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Sally Beauty presently has an average rating of "Hold" and a consensus price target of $17.00.

Sally Beauty Company Profile

Sally Beauty Holdings, Inc is a leading global specialty retailer and distributor of professional beauty supplies, serving both retail customers and salon professionals. The company operates two primary channels: Sally Beauty Supply, which offers a broad assortment of hair color, hair care, styling, and skincare products; and Beauty Systems Group (BSG), which provides salon-quality products and supplies to professional stylists and salon owners. With a focus on catering to diverse customer needs, Sally Beauty offers well-known brands alongside private label lines, positioning itself as a one-stop source for beauty professionals and enthusiasts alike.

Founded in 1964 and headquartered in Denton, Texas, Sally Beauty has grown through a combination of organic expansion and strategic acquisitions.

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