e.l.f. Beauty (NYSE:ELF) Announces Quarterly Earnings Results, Beats Estimates By $1.04 EPS

e.l.f. Beauty (NYSE:ELF) issued its quarterly earnings results on Wednesday. The company reported $1.75 EPS for the quarter, beating the consensus estimate of $0.71 by $1.04, FiscalAI reports. The firm had revenue of $479.37 million during the quarter, compared to analysts’ expectations of $431.20 million. e.l.f. Beauty had a return on equity of 14.15% and a net margin of 3.38%.The business’s quarterly revenue was up 35.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.89 earnings per share. e.l.f. Beauty updated its FY 2027 guidance to 3.500-3.550 EPS.

Here are the key takeaways from e.l.f. Beauty’s conference call:

• Q1 net sales rose 36%, marking e.l.f. Beauty’s 30th consecutive quarter of growth. Adjusted EBITDA increased 93% year over year, although results benefited from approximately $50 million in tariff refunds.
• Management raised fiscal 2027 guidance to 18%–20% net sales growth, adjusted EBITDA of $401 million–$407 million, and adjusted EPS of $3.50–$3.55, citing improving trends across e.l.f., Naturium, and Rhode.
• Rhode continued to materially outperform expectations, contributing approximately $160 million in Q1 sales and generating $27 million in direct-to-consumer sales in one day. The brand is scheduled to expand into Sephora across 19 European countries in September.
• The company is expanding its growth runway through e.l.f. Hair, international distribution, and new retail placements, including Boots in the U.K., Sephora Brazil, Dollar General for e.l.f. Skin, and Sephora Canada and Mexico for Naturium.
• Unit volumes declined approximately 3% in Q1, and management plans to reinvest the tariff refund through lower prices on about 10% of e.l.f. SKUs and higher marketing spending. Gross-margin benefits from the refund are therefore expected to be fully reinvested, while Rhode’s shift toward retail is expected to create mix pressure.

e.l.f. Beauty Stock Performance

NYSE ELF traded up $6.19 on Friday, reaching $98.50. The stock had a trading volume of 2,203,327 shares, compared to its average volume of 2,862,523. The company has a debt-to-equity ratio of 0.72, a current ratio of 2.35 and a quick ratio of 1.69. The company has a market cap of $5.81 billion, a P/E ratio of 98.55, a price-to-earnings-growth ratio of 3.36 and a beta of 1.58. The firm has a fifty day moving average of $70.51 and a two-hundred day moving average of $71.55. e.l.f. Beauty has a 1-year low of $48.82 and a 1-year high of $150.99.

Key e.l.f. Beauty News

Here are the key news stories impacting e.l.f. Beauty this week:

• Positive Sentiment: Results beat expectations: Quarterly revenue rose 35.5% year over year to $479.4 million, surpassing the $431.2 million consensus estimate. Adjusted earnings of $1.75 per share were well above the $0.71 forecast and $0.89 reported in the prior-year quarter. e.l.f. Beauty earnings report
• Positive Sentiment: Fiscal 2027 outlook raised: Management now projects 18%–20% net sales growth, compared with 12%–14% previously. Revenue is expected to approach $2 billion, while EPS guidance of $3.50–$3.55 is above the roughly $3.12 analyst consensus. e.l.f. Beauty raises fiscal 2027 outlook
• Positive Sentiment: Rhode and international growth support the story: Rhode contributed approximately $160 million in quarterly sales, while international revenue increased 61%. e.l.f. also plans to reinvest about $50 million in tariff refunds into global expansion and brand development. e.l.f. Beauty Q1 earnings beat
• Positive Sentiment: More favorable analyst commentary: JPMorgan raised its price target from $94 to $111 with an overweight rating, while B. Riley lifted its target from $70 to $100 and issued a buy rating.
• Neutral Sentiment: Profitability benefited from tariff refunds: Roughly $50 million of refunds helped drive a significant increase in net income and gross margin. Investors may discount part of the earnings beat because the benefit is not expected to recur. e.l.f. Beauty tariff refunds
• Negative Sentiment: Risks remain after the rally: UBS maintained a neutral rating despite raising its target to $89. Investors are watching whether the core e.l.f. brand can regain momentum, as well as elevated debt following the Rhode acquisition and continued insider selling. Kory Marchisotto sold 12,173 shares for approximately $1.1 million while retaining a substantial stake.

Insider Buying and Selling

In other news, insider Jennifer Catherine Hartnett sold 25,357 shares of the business’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $80.00, for a total value of $2,028,560.00. Following the completion of the sale, the insider owned 28,699 shares of the company’s stock, valued at approximately $2,295,920. The trade was a 46.91% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Kory Marchisotto sold 12,173 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $88.02, for a total transaction of $1,071,467.46. Following the transaction, the insider directly owned 169,695 shares in the company, valued at approximately $14,936,553.90. This represents a 6.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 134,028 shares of company stock valued at $9,422,961 in the last 90 days. 3.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On e.l.f. Beauty

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Price T Rowe Associates Inc. MD grew its holdings in shares of e.l.f. Beauty by 47.9% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,197,319 shares of the company’s stock worth $167,086,000 after purchasing an additional 711,540 shares in the last quarter. State Street Corp grew its stake in e.l.f. Beauty by 0.8% during the fourth quarter. State Street Corp now owns 1,737,181 shares of the company’s stock worth $132,095,000 after buying an additional 13,231 shares in the last quarter. Ensign Peak Advisors Inc increased its holdings in e.l.f. Beauty by 37.7% in the 4th quarter. Ensign Peak Advisors Inc now owns 1,319,523 shares of the company’s stock valued at $100,337,000 after buying an additional 361,371 shares during the period. Morgan Stanley increased its holdings in e.l.f. Beauty by 13.2% in the 4th quarter. Morgan Stanley now owns 1,184,786 shares of the company’s stock valued at $90,091,000 after buying an additional 138,415 shares during the period. Finally, Dimensional Fund Advisors LP raised its position in shares of e.l.f. Beauty by 17.9% in the 4th quarter. Dimensional Fund Advisors LP now owns 620,252 shares of the company’s stock valued at $47,165,000 after buying an additional 94,026 shares in the last quarter. 92.44% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities research analysts have recently commented on the company. JPMorgan Chase & Co. increased their price objective on e.l.f. Beauty from $94.00 to $111.00 and gave the company an “overweight” rating in a report on Thursday. Sanford C. Bernstein raised their target price on shares of e.l.f. Beauty from $113.00 to $121.00 and gave the company an “outperform” rating in a research note on Thursday. Jefferies Financial Group boosted their price target on e.l.f. Beauty from $72.00 to $100.00 and gave the stock a “buy” rating in a research report on Tuesday, July 28th. Robert W. Baird set a $105.00 price objective on e.l.f. Beauty in a research report on Thursday. Finally, The Goldman Sachs Group set a $100.00 target price on e.l.f. Beauty in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $89.25.

e.l.f. Beauty Company Profile

e.l.f. Beauty (NYSE: ELF) is an American cosmetics company known for offering an extensive range of affordable, trend-driven makeup and skincare products. The company’s portfolio spans foundations, lipsticks, mascaras, brushes, serums, masks and other beauty essentials, all positioned at accessible price points. e.l.f. Beauty maintains a direct-to-consumer platform through its e-commerce site and engages in widespread retail partnerships with major chains such as Target, Walmart, Ulta Beauty and Amazon.

Founded in 2004 and headquartered in Oakland, California, e.l.f.