Earnings Preview: Ulta Salon, Cosmetics & Fragrance

| About: Ulta Beauty, (ULTA)

Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) operates as a beauty retailer that provides prestige, mass, and salon products; and salon services in the United States. Ulta Beauty provides affordable indulgence to its customers by combining what it calls unmatched product breadth, value and convenience with the distinctive environment and experience of a specialty retailer.

Ulta Salon, Cosmetics & Fragrance, Inc. is scheduled to report its first-quarter earnings results on June 05, 2012, after market close.

Technical Overview

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Ulta has a market cap of $5.62 billion and it is currently trading around $89.60 with a 52-week range of $48.28 to $96.65. The stock has 38.02% price performance for the year 2012. The following table provides the key financial ratios for Ulta:

Key Ratio Value
Current Ratio 3.52
PEG 1.76
P/E 47.16
Forward P/E 28.54
Profit Margin 6.77%
Return On Assets (ROA) 14.25%
Return On Equity (ROE) 24.36%

Recent News

  • On May 21, 2012, Mandel's Lone Pine Capital raised its stake in Ulta to 5.6%
  • On May 14, 2012, ULTA 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 9,2012 ULTA announced that it has priced an underwritten public offering of 7,000,000 shares of its common stock held by certain entities associated with Mousse Partners, at a price to the public of $84.00 per share.
  • On May 7, 2012, Ulta reported preliminary first-quarter fiscal 2012 EPS of $0.52 to $0.53 cents on total net sales of $452 to $460 million. Comparable store sales for first-quarter fiscal 2012 are now expected to increase 10.1%, exceeding the company's previous guidance for comparable store sales to increase in a range of 6% to 8%.
  • On May 7, 2012, Ulta filed to offer 11,201,970 shares of common stock on behalf of selling shareholders.
  • On May 7, 2012 Ulta announced the underwritten public offering of 7,000,000 shares of its common stock by certain entities associated with Mousse Partners.
  • On March 26, 2012, Jefferies raised its price target from $90 to $92. Also, remains "super bullish" on ULTA and still expect significant upside ahead.

Analyst Guidance and Earnings History

First-quarter revenue is expected to be $473.86 million when compared with $386.01 million for the same quarter last year. Earnings per share for the first quarter are expected to be 53 cents a share, up from 37 cents a share in the year-ago period.

The average price target from analysts for Ulta is $96.08 with average rating OVERWEIGHT.

Out of the last four quarters, Ulta has met or exceeded the EPS estimates all four times. The following chart shows the analyst estimates history and the actual EPS results:

Sources: Some of the data is taken from Google Finance, Yahoo Finance, Finviz, Streed Insider and investor sites.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in ULTA over the next 72 hours.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.

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Tagged: , Personal Services, Earnings
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