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Ulta Salon, Cosmetics & Fragrance, Inc. (ULTA) is scheduled to report its Q2 2012 results on September 6, 2012, after the bell. The street expects EPS and revenue of $0.51 and $473.80M, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from ULTA and the news from its closest competitors.

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Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.54 EPS, beating analyst estimates of $0.53.

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The consensus EPS estimate is $0.51 based on 10 analysts' estimates, up from $0.38 a year ago. Revenue estimates are $473.80M, up from $394.57M a year ago. The median target price by analysts for the stock is $105.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On March 9, 2012, Oppenheimer reiterated Outperform rating for the company.

Latest News

  • On August 22, 2012, Ulta Salon Cosmetics and Fragrance Inc announced the appointment of Bruce L. Hartman as Chief Financial Officer, effective September 7, 2012. He will report to Chuck Rubin, President and Chief Executive Officer.
  • On June 5, 2012, Ulta Salon Cosmetics and Fragrance Inc announced that for the second quarter of 2012, it expects net sales in the range of $466 million to $473 million and income per diluted share (EPS) to be in the range of $0.49 to $0.51. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report revenue of $467 million and EPS of $0.48 for the second quarter of 2012.
  • On May 14, 2012, Ulta Salon Cosmetics and Fragrance Inc announced that the underwriters of the public offering of 7,000,000 shares of its common stock held by certain entities associated with Mousse Partners have exercised in full their option to purchase an additional 1,050,000 shares from one of the selling stockholders.
  • On May 7, 2012, Ulta Salon Cosmetics and Fragrance Inc announced that for the first quarter of 2012, it expects net sales to be $474 million, compared to previous guidance of $452 million to $460 million, comparable store sales to increase 10.1%, exceeding the Company's previous guidance for comparable store sales to increase in a range of 6% to 8%, income per diluted share to be in the range of $0.52 to $0.53. The Company's previous guidance for income per diluted share was $0.46 to $0.48. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report revenue of $460 million and EPS of $0.48 for the first quarter of 2012.
  • On March 8, 2012, Ulta Salon Cosmetics and Fragrance Inc announced that for the first quarter of 2012, it expects net sales in the range of $452 million to $460 million, income per diluted share to be in the range of $0.46 to $0.48, this includes approximately a $0.01 impact driven by incremental pre-opening expense from its accelerated new store program, and comparable stores sales to increase in the range of 6% to 8%. For fiscal 2012, the Company expects deliver net income growth at the high end of the Company's long term target of 25%-30% and comparable store sales growth at or slightly above the high end of the Company's long term goal of 3% to 5%. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report revenue of $459 million and EPS of $0.45 for the first quarter of 2012; and net income of $149.34 million for fiscal 2012.

Competitors

Body Central (BODY), Macy's (M), Perfumania Holdings (PERF), and Sally Beauty Holdings (SBH) are peers for comparison for Ulta Salon and the table below provides the key metrics for these companies and the industry.

Ulta Salon, Cosmetics & Fragrance, Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

ULTA Chart

ULTA data by YCharts

Competitors' Latest Development

  • On August 27, 2012, Sally Beauty Holdings Inc announced that its Board of Directors has approved a new stock repurchase program authorizing the Company to repurchase up to $300 million of its common stock over an 18-month period beginning October 1, 2012.
  • On August 27, 2012, Sally Beauty Holdings Inc announced the retirement of three members of the board of directors of Sally Beauty Holdings, Inc., James G. Berges, Kenneth A. Giuriceo and Richard J. Schnall.
  • On August 17, 2012, Body Central Corp announced that Thomas W. Stoltz has been promoted to Chief Operating Officer and named interim Chief Executive Officer. Mr. Stoltz has served as the Company's Executive Vice President, Chief Financial Officer and Treasurer since September 2011 and replaces B. Allen Weinstein, the Company's former Chief Executive Officer.
  • On August 8, 2012, Macy's Inc raised earnings guidance for fiscal 2012 to a range of $3.30 to $3.35 per diluted share, compared with previous guidance for earnings per diluted share of $3.25 to $3.30. Guidance for same-store sales in fiscal 2012 remains unchanged at an increase of approximately 3.7%. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $3.36 for fiscal 2012.
  • On August 2, 2012, Body Central Corp announced that for third quarter of 2012, it expects comparable sales to decrease 12 to 14 percent, net revenues in the range of $68 million to $70 million and diluted earnings per share in the range of $0.02 to $0.04. For fiscal 2012, it expects comparable sales to decrease 8 to 10 percent, net revenues will be in the range of $314 million to $317 million and diluted earnings per share in the range of $0.80 to $0.83
  • On July 5, 2012, Macy's Inc reaffirmed fiscal 2012 guidance and expects same store sales to rise by approximately 3.7%, with earnings per diluted share in the range of $3.25 to $3.30. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $3.37 for fiscal 2012.
  • On June 18, 2012, Body Central Corp revised sales and earnings guidance for the second quarter and fiscal 2012. For the second quarter of 2012, the Company expects net revenues in the range of $77-$79 million, comparable sales to decrease in a range of 7% to 9% and diluted earnings per share in the range of $0.19 to $0.21. For fiscal 2012, the Company now expects net revenues in the range of $323-$328 million, comparable sales to decrease in a range of 4% to 6% and diluted EPS in the range of $1.07 to $1.11.
  • On May 18, 2012, Macy's Inc announced that it declared a regular quarterly dividend of $0.20 per share on Macy's common stock, payable July 2, 2012, to shareholders of record at the close of business on June 15, 2012.
  • On May 15, 2012, Sally Holdings LLC (the Company), a wholly-owned subsidiary of Sally Beauty Holdings Inc announced the pricing of its previously announced public offering of $700 million aggregate principal amount of 5.75% Senior Notes due 2022 (the Senior Notes).
  • On May 9, 2012, Macy's Inc announced that it continues to expect same-store sales to grow by approximately 3.5% for the remainder of fiscal 2012. When added to the first quarter's reported results, same-store sales growth for fiscal 2012 as a whole now is expected to be approximately 3.7% -- slightly higher than previous guidance for a same-stores sales increase of approximately 3.5% in fiscal 2012.
  • On May 7, 2012, Sally Beauty Holdings Inc announced the underwritten public offering of 15,000,000 shares of its common stock held by investment funds associated with Clayton, Dubilier & Rice, LLC (the CDR Investors) pursuant to the Company's shelf registration statement filed with the Securities and Exchange Commission.
  • On May 3, 2012, Body Central Corp announced that for the second quarter of 2012, the Company expects net revenues in the range of $80-$82 million, comparable sales to decrease in a range of 5%-7% and diluted earnings per share in the range of $0.26-$0.28. For fiscal 2012, the Company now expects net revenues in the range of $333-$337 million, comparable sales to decrease in a range of 1%-3% and diluted earnings per share in the range of $1.34-$1.38. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $87 million and EPS of $0.36 for the second quarter of 2012; revenue of $346 million and EPS of $1.52 for fiscal 2012.
  • On April 19, 2012, Perfumania Holdings Inc announced that it has completed its acquisition of Parlux Fragrances, Inc. The outstanding shares of Parlux common stock were converted into the right to receive cash and Perfumania common stock with an aggregate value of approximately $118 million and Parlux became a wholly-owned subsidiary of Perfumania.
  • On March 8, 2012, Body Central Corp announced that for fiscal 2012, it expects net revenues in the range of $80 million to $82 million and diluted earnings per share in the range of $0.34 to $0.36, based on diluted weighted-average shares outstanding of 16.2 million.

Technical Overview


The stock has a market capitalization of $5.92B and is currently trading at $94.00 with a 52 week range of $51.64 - $98.42. The stock's year-to-date performance has been 44.79%. It is currently trading above 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Ulta Salon Reports On September 6