e.l.f. Beauty gains 10% as earnings show positive momentum continues

e.l.f. Beauty (NYSE:) stock is up roughly 10% in pre-market Thursday after the cosmetics company reported much better-than-expected results for its fiscal fourth quarter.

ELF posted of $0.42 on revenue of $187.4 million, easily ahead of the consensus for earnings of $0.20 per share on revenue of $156.14M. The gross margin came in at 69%, topping the expected 65.3%.

“Our outstanding results in fiscal 2023 underscore the power of the e.l.f. brand and the world class team at e.l.f. Beauty,” said Tarang Amin, e.l.f. Beauty’s chairman and chief executive officer.

“We gained 270 basis points of market share in the quarter and increased our ranking to the number three U.S. Mass Cosmetics brand for the first time, according to Nielsen. As we look ahead, we believe we are still in the early innings of unlocking the full potential we see for e.l.f. Beauty.”

The company sees full-year EPS in the region of $1.73-1.76 on revenue of $705-720M. Analysts were expecting an FY profit per share of 1.64 on revenue of $637.7M.

BofA analysts said the company’s momentum “is as sticky as its power grip primer.”

“We reiterate our Buy rating amid outstanding results and expect further penetration within cosmetics and skincare through innovation and continued expansion of its consumer base,” they said.

DA Davidson analysts boosted the price target to $121 per share on continued market share gains.

“The beat-and-raise trend could certainly continue,” analysts said.