Sally Beauty (NYSE:SBH) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Sally Beauty's stock experienced a significant increase, opening at $11.02 after closing at $9.97, following a strong earnings report that exceeded expectations.
• The company reported an earnings per share (EPS) of $0.51, surpassing the consensus estimate of $0.42, although revenue showed a slight decrease of 1.0% year-over-year.
• Analysts currently have a consensus rating of "Hold" for Sally Beauty, with an average target price of $12.63, reflecting mixed sentiment among investors.

Shares of Sally Beauty Holdings, Inc. (NYSE:SBH - Get Free Report) gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $9.97, but opened at $11.02. Sally Beauty shares last traded at $11.39, with a volume of 290,272 shares changing hands.

The specialty retailer reported $0.51 EPS for the quarter, beating the consensus estimate of $0.42 by $0.09. Sally Beauty had a net margin of 5.03% and a return on equity of 29.48%. The company had revenue of $933.31 million for the quarter, compared to analyst estimates of $928.78 million. During the same period in the prior year, the company earned $0.45 earnings per share. The firm's revenue was down 1.0% on a year-over-year basis.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen lowered shares of Sally Beauty from a "buy" rating to a "hold" rating in a research note on Thursday, May 22nd. One analyst has rated the stock with a sell rating, three have assigned a hold rating and two have given a buy rating to the company. Based on data from MarketBeat.com, Sally Beauty currently has a consensus rating of "Hold" and an average target price of $12.63.

Institutional Investors Weigh In On Sally Beauty

Hedge funds have recently modified their holdings of the company. Golden State Wealth Management LLC boosted its stake in shares of Sally Beauty by 100.0% during the 1st quarter. Golden State Wealth Management LLC now owns 3,470 shares of the specialty retailer's stock worth $31,000 after acquiring an additional 1,735 shares in the last quarter. Parallel Advisors LLC boosted its stake in shares of Sally Beauty by 536.4% during the 1st quarter. Parallel Advisors LLC now owns 3,920 shares of the specialty retailer's stock worth $35,000 after acquiring an additional 3,304 shares in the last quarter. Federated Hermes Inc. raised its position in shares of Sally Beauty by 119.1% during the 4th quarter. Federated Hermes Inc. now owns 3,702 shares of the specialty retailer's stock worth $39,000 after purchasing an additional 2,012 shares during the last quarter. GAMMA Investing LLC raised its position in shares of Sally Beauty by 820.3% during the 1st quarter. GAMMA Investing LLC now owns 4,712 shares of the specialty retailer's stock worth $43,000 after purchasing an additional 4,200 shares during the last quarter. Finally, CWM LLC raised its position in shares of Sally Beauty by 123.7% during the 1st quarter. CWM LLC now owns 8,949 shares of the specialty retailer's stock worth $81,000 after purchasing an additional 4,948 shares during the last quarter.

Sally Beauty Stock Performance

The company has a current ratio of 2.32, a quick ratio of 0.44 and a debt-to-equity ratio of 1.29. The firm's 50-day moving average is $9.41 and its two-hundred day moving average is $9.21. The stock has a market cap of $1.15 billion, a price-to-earnings ratio of 6.43 and a beta of 1.30.

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.

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