Health and beauty

Earnings Preview: Ulta Beauty

Ulta Beauty (NASDAQ:ULTA) will publish its next earnings results this Thursday, May 26. Here is Benzinga’s essential guide to Ulta Beauty’s first quarter earnings report.

What are earnings, net income and earnings per share?

Earnings and earnings per share are good indicators for a company’s profitability. Total earnings, otherwise known as net earnings, equals the difference between total revenue and total expenses. Earnings per share are equal to net income divided by the number of outstanding shares.

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Earnings and turnover

Based on Ulta Beauty management projections, analysts expect earnings per share of $ 4.45 on revenue of $ 2.12 billion. In the same quarter of the previous year, Ulta Beauty reported earnings of $ 4.10 per share on revenues of $ 1.94 billion.

Why are analyst estimates and surprise earnings important?

Analysts covering this company will publish forward estimates of its revenue and earnings per share each quarter. The average of each analyst’s earnings per share and revenue forecasts for a company for a quarter gives rise to the “consensus estimates.” When a company reports profits or revenues that are higher or lower than the consensus estimates, it is called “surprise profits” that can significantly move the stock.

If the company’s earnings match the estimates, they would be up by 8.54%. The turnover would be up by 9.33% compared to last year. The earnings of Ulta Beauty positioned themselves with respect to the estimates made previously by analysts as follows:

Quarter Fourth quarter 2021 Third quarter 2021 Second quarter 2021 First quarter 2021
Earnings per share estimate 457 243 242 193
Effective earnings per share 541 394 456 410
Estimated turnover 2.69 billion 1.88 billion 1.72 billion 1.64 billion
Actual turnover 2.73 billion 2 billion 1.97 billion 1.94 billion

Stock performance

Shares of Ulta Beauty were trading at $ 342.08 on May 24th. In the past 52 weeks, stocks have risen 5.93%. As these returns are generally positive, long-term shareholders can be satisfied near the earnings report.

No wonder the stock moves in the wake of comments made during the conference call. Ulta Beauty is scheduled to call at 4:30 p.m. ET, can be accessed from here:

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