OAKLAND, Calif. - e.l.f. Beauty, Inc. (NYSE: NYSE:ELF) reported strong first quarter results that beat analyst expectations, but saw its stock tumble over 8% in Friday's premarket trade as its full-year guidance came in below estimates.
The cosmetics company posted adjusted earnings per share of $1.10 for Q1, surpassing the analyst consensus of $0.83. Revenue jumped 50% YoY to $324.5 million, also topping expectations of $304.05 million.
However, e.l.f. Beauty's fiscal 2025 outlook disappointed investors. The company forecasts full-year EPS of $3.36-$3.41, below the $3.42 consensus. Revenue guidance of $1.28-$1.30 billion was roughly in line with estimates of $1.296 billion.
"We are off to a strong start this fiscal year, delivering 50% net sales growth and 260 basis points of market share gains in Q1," said Tarang Amin, e.l.f. Beauty's Chairman and CEO.
The company cited strength in both retail and e-commerce channels as driving the Q1 revenue surge. Gross margin expanded 80 basis points to 71%, benefiting from favorable foreign exchange impacts and lower transportation costs.
In their post-earnings note, Bank of America analysts maintained a positive outlook on the stock, highlighting that e.l.f Beauty's "sales beat and market share gains continue."
Regarding the guidance miss, analysts believe it was "conservative given robust growth in tracked channels and Naturium."
BofA reiterated a Buy rating and the price target of $230 on the stock.
"We believe this premium multiple is warranted as the company is still in a high growth phase and continues to diversify its portfolio across color cosmetics/skincare and customer base."
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