What's Going On With Ulta Beauty Stock Friday?

Ulta Beauty, Inc. ULTA shares are moving higher on Friday after the company reported better-than-expected 2024 third-quarter earnings on Thursday after the market closed.

The Details: Ulta shares traded about 10% higher after the bell on Thursday following the release of the company’s earnings report. The earnings report included adjusted earnings per share of $5.14, beating analyst estimates of $4.54.

In addition, the company reported sales of $2.53 billion, beating analyst estimates of $2.50 billion. Comparable sales for the quarter were up 4.5% year-over-year which the company attributed to a 0.5% increase in transactions and a 0.1% growth in average ticket.

Ulta reported other important pieces of financial information. The company reported selling, general and administrative expenses of $682.3 million and operating income of $318.5 million. Additionally, it reported cash and cash equivalents of $177.8 million.

The company repurchased 731,458 shares during the third quarter. Furthermore, it has approximately $2.9 billion remaining in authorized share repurchases.

Ulta raised its guidance for the 2024 fiscal year. Previously the company expected net sales from $11.0 billion to $11.2 billion. Ulta now expects between $11.1 billion to $11.2 billion versus analyst estimates of $11.17 billion.

Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.

• Telsey Advisory Group analyst Dana Telsey maintained an Outperform rating on Ulta and raised the price target from $450 to $500.
• Canaccord Genuity analyst Susan Anderson maintained a Buy rating on Ulta and raised its price target from $476 to $500.
• Piper Sandler analyst Korinne Wolfmeyer reiterated a Neutral rating on Ulta and raised its price target from $360 to $390.
• Wells Fargo analyst Ike Boruchow maintained an Underweight rating on Ulta and raised its price target from $300 to $350.
• Stifel analyst Mark Astrachan maintained a Hold rating on Ulta and raised its price target from $395 to $455.

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ULTA Price Action: At the time of writing, Ulta shares are trading 10.60% higher at $434.50, according to data from Benzinga Pro.

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