e.l.f. Beauty, Inc. (NYSE:ELF) shares added more than 8% shortly after Thursday’s opening bell after the cosmetics company breezed past estimates for its fiscal second-quarter financial results and raised its full-year sales and profit guidance.
It now expects its sales to increase 55% to 57% for the full year to between $896 to $906 million, compared to its prior guidance of a 37% to 39% increase to $792 to $802 million.
Wall Street analysts, on average, had been expecting full-year revenue of $846.1 million.
The company’s profits are also expected to be higher, with e.l.f. Beauty now forecasting adjusted earnings per share (EPS) in the range of $2.47 to $2.50, up from its prior guidance of $2.19 to $2.22 and in line with the analyst estimate of $2.47.
The company said its updated outlook includes the acquisition of skincare brand Naturium, which is expected to contribute $48 million in sales and $0.04 in adjusted EPS.
For 2Q, the three months ended September 30, 2023, the company’s revenue increased 76% year over year to $215.5 million, compared to estimates of $197.27 million.
Adjusted EPS was $0.82, ahead of the consensus expectation of $0.54.
“In 2Q, we grew net sales by 76% and category share by 330 basis points, marking our 19th consecutive quarter of growth in each,” e.l.f. CEO Tarang Amin said in a statement.
“As we look ahead, the significant whitespace we see across color cosmetics, skin care and international gives us confidence that we are in the early innings of unlocking the full potential we see for e.l.f. Beauty.”
e.l.f. Beauty shares had gained 8.4% at US$102.51 in early trade.
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