e.l.f. Beauty ( NYSE: ELF ) stock jumped 10.4% before the bell on Thursday after the cosmetics maker raised its FY23 guidance well above Street estimates to reflect strong demand, market share gains, cost savings and product mix.
The company expects FY23 adj. EPS of $1.07-$1.10, above $0.91 consensus, and net sales of $448M-$456M, topping $459.45M consensus.
"Our raised outlook reflects outperformance in Q2 relative to our expectations, pipeline related to incremental space gains with Walmart, Target and Shoppers Drug Mart as well as ongoing business momentum," said CFO Mandy Fields in an earnings call .
CEO Tarang Amin noted that e.l.f. ( ELF ) expanded its market share by 115 bps in Q2, according to Nielsen.
Bank of America raised its price target on e.l.f. ( ELF ) to $53 from $45 (27% potential upside to last close) and reiterated its Buy rating. "We expect share gain benefits to continue in the coming quarters as ELF gains incremental shelf space and more consumers migrate to ELF products," analyst Anna Lizzul wrote in a note to clients.
Piper Sandler raised its price target on e.l.f. ( ELF ) to $55 from $46 (32% potential upside) and maintained its Overweight rating. "The guidance raise is without a pricing increase, proving ELF as the exception to the norm in terms of declining unit volume demand that we're seeing across the beauty industry," said analyst Korinne Wolfmeyer.
While Wall Street analysts remain bullish on e.l.f. ( ELF ), SA Quant rates the stock Hold as it scored very poorly in terms of valuation .
Shares of e.l.f. ( ELF ) gained 25.6% YTD.
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e.l.f. stock jumps 10% premarket on raised outlook amid strong demand, market share gains