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elf cosmetics stock price: E.l.f. Beauty surges after strong Q4 results

elf cosmetics stock price is up nearly 10% in premarket trading after the company reported strong fourth-quarter results. The company reported revenue of $143.9 million, up 28% year-over-year. Net income was $20.6 million, up 53% year-over-year. Diluted earnings per share were $0.41, up 50% year-over-year.

The strong results were driven by growth in all of the company's channels, including its e-commerce, retail, and wholesale businesses. The company also benefited from a favorable product mix, with higher-margin products driving a significant portion of the growth.

"We are very pleased with our fourth-quarter and full-year results, which reflect the strength of our brand and our team's ability to execute on our strategic initiatives," said Tarang Amin, CEO of e.l.f. Beauty. "Our growth was driven by strong demand for our products across all channels, and we continue to see significant opportunities for growth in the future."

elf cosmetics stock price

Q4 Highlights

elf cosmetics stock price: E.l.f. Beauty surges after strong Q4 results

Revenue of $143.9 million, up 28% year-over-year
Net income of $20.6 million, up 53% year-over-year
Diluted earnings per share of $0.41, up 50% year-over-year
Gross margin of 66.9%, up 120 basis points year-over-year
Operating margin of 14.3%, up 250 basis points year-over-year

Full-Year Highlights

Revenue of $549.3 million, up 25% year-over-year
Net income of $75.7 million, up 36% year-over-year
Diluted earnings per share of $1.51, up 34% year-over-year
Gross margin of 66.5%, up 110 basis points year-over-year
Operating margin of 13.8%, up 240 basis points year-over-year

Outlook

For the full year 2023, e.l.f. Beauty expects revenue to grow in the mid-teens to high-teens percentage range. The company also expects to continue to improve its profitability, with gross margin expanding and operating margin improving.

"We are confident that we have the right team, the right strategy, and the right products to continue to drive growth and profitability in the future," said Amin. "We are excited about the opportunities that lie ahead for e.l.f. Beauty."

Analysts' Opinions

Analysts are generally positive on e.l.f. Beauty's stock. The consensus price target for the stock is $32.00, which is about 20% above the current price.

Key Risks

There are a number of risks that could impact e.l.f. Beauty's stock price. These risks include:

Competition from other beauty companies
Changes in consumer preferences
Economic downturn
Supply chain disruptions

Conclusion

e.l.f. Beauty is a rapidly growing beauty company with a strong financial foundation. The company's stock price is up nearly 10% in premarket trading after the company reported strong fourth-quarter results. Analysts are generally positive on the stock, and the consensus price target is $32.00. There are a number of risks that could impact the stock price, but the company's strong fundamentals and growth prospects make it a good investment for long-term investors.

Tables

Quarter	Revenue	Net Income	Diluted EPS	Gross Margin	Operating Margin
Q4 2022	$143.9 million	$20.6 million	$0.41	66.9%	14.3%
Q4 2021	$112.4 million	$13.5 million	$0.27	65.7%	11.8%
Full-Year 2022	$549.3 million	$75.7 million	$1.51	66.5%	13.8%
Full-Year 2021	$439.2 million	$55.6 million	$1.13	65.4%	11.4%