e.l.f. Beauty (NYSE:ELF) Releases Earnings Results, Beats Expectations By $1.04 EPS

e.l.f. Beauty (NYSE:ELF) issued its quarterly earnings data on Wednesday. The company reported $1.75 earnings per share for the quarter, beating the consensus estimate of $0.71 by $1.04, FiscalAI reports. The firm had revenue of $479.37 million for the quarter, compared to the consensus estimate of $433.97 million. e.l.f. Beauty had a net margin of 1.61% and a return on equity of 11.02%. e.l.f. Beauty’s quarterly revenue was up 35.5% compared to the same quarter last year. During the same period last year, the firm posted $0.89 EPS. e.l.f. Beauty updated its FY 2027 guidance to 3.500-3.550 EPS.

Here are the key takeaways from e.l.f. Beauty’s conference call:

• Q1 net sales rose 36%, marking e.l.f. Beauty’s 30th consecutive quarter of growth. Adjusted EBITDA increased 93% year over year, although results benefited from approximately $50 million in tariff refunds.
• Management raised fiscal 2027 guidance to 18%–20% net sales growth, adjusted EBITDA of $401 million–$407 million, and adjusted EPS of $3.50–$3.55, citing improving trends across e.l.f., Naturium, and Rhode.
• Rhode continued to materially outperform expectations, contributing approximately $160 million in Q1 sales and generating $27 million in direct-to-consumer sales in one day. The brand is scheduled to expand into Sephora across 19 European countries in September.
• The company is expanding its growth runway through e.l.f. Hair, international distribution, and new retail placements, including Boots in the U.K., Sephora Brazil, Dollar General for e.l.f. Skin, and Sephora Canada and Mexico for Naturium.
• Unit volumes declined approximately 3% in Q1, and management plans to reinvest the tariff refund through lower prices on about 10% of e.l.f. SKUs and higher marketing spending. Gross-margin benefits from the refund are therefore expected to be fully reinvested, while Rhode’s shift toward retail is expected to create mix pressure.

e.l.f. Beauty Stock Down 0.9%

Shares of ELF traded down $0.83 during trading hours on Wednesday, reaching $87.01. The company’s stock had a trading volume of 5,062,330 shares, compared to its average volume of 2,295,668. The firm has a market cap of $5.13 billion, a price-to-earnings ratio of 189.16, a P/E/G ratio of 3.42 and a beta of 1.58. The company has a quick ratio of 1.69, a current ratio of 2.35 and a debt-to-equity ratio of 0.72. The company has a 50 day moving average of $69.81 and a two-hundred day moving average of $71.54. e.l.f. Beauty has a 1-year low of $48.82 and a 1-year high of $150.99.

More e.l.f. Beauty News

Here are the key news stories impacting e.l.f. Beauty this week:

• Positive Sentiment: e.l.f. Beauty reported fiscal Q1 2027 revenue of $479.4 million, up 35.5% year over year and above the $434.0 million analyst estimate. Adjusted earnings were $1.75 per share, versus the $0.71 consensus and $0.89 a year earlier. e.l.f. Beauty Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: Management raised fiscal 2027 revenue-growth guidance to 18%–20%, from 12%–14%, and set EPS guidance at $3.50–$3.55, above the $3.12 consensus. The company cited continued momentum across its portfolio, including the acquired Rhode brand. e.l.f. Beauty Fiscal 2027 Results
• Neutral Sentiment: Rhode helped power growth, with sales benefiting from Hailey Bieber’s brand, but investors remain focused on whether e.l.f.’s legacy namesake business can reaccelerate after earlier price increases pressured unit volumes. Hailey Bieber’s Rhode Powers e.l.f. Beauty’s Sales Growth
• Negative Sentiment: Approximately $50 million of tariff refunds contributed to a roughly 14-percentage-point gross-margin improvement and nearly doubled net income. Because the refunds are viewed as nonrecurring, traders questioned the durability and quality of the reported profit surge. e.l.f. Beauty Tariff Refunds and Q1 Profits
• Negative Sentiment: Leverage remains elevated following the Rhode acquisition, with total debt of about $834 million at quarter-end. In addition, recent insider activity was heavily weighted toward selling, while the median analyst price target cited by Quiver Quantitative was $70, below the current trading level.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the company. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and set a $64.00 price target on shares of e.l.f. Beauty in a report on Tuesday, June 16th. JPMorgan Chase & Co. increased their target price on shares of e.l.f. Beauty from $80.00 to $94.00 and gave the company an “overweight” rating in a research report on Thursday, July 16th. Sanford C. Bernstein raised shares of e.l.f. Beauty from a “market perform” rating to an “outperform” rating and upped their price target for the stock from $60.00 to $113.00 in a research note on Wednesday. Raymond James Financial boosted their target price on e.l.f. Beauty from $85.00 to $87.00 and gave the stock a “strong-buy” rating in a report on Tuesday, July 14th. Finally, Piper Sandler reissued a “neutral” rating on shares of e.l.f. Beauty in a research note on Friday, June 12th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, e.l.f. Beauty has a consensus rating of “Moderate Buy” and a consensus price target of $83.06.

Insider Buying and Selling at e.l.f. Beauty

In other news, insider Kory Marchisotto sold 4,352 shares of the stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $51.53, for a total transaction of $224,258.56. Following the transaction, the insider owned 181,868 shares in the company, valued at $9,371,658.04. This represents a 2.34% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Jennifer Catherine Hartnett sold 25,357 shares of the stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $80.00, for a total transaction of $2,028,560.00. Following the transaction, the insider directly owned 28,699 shares in the company, valued at $2,295,920. The trade was a 46.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 121,855 shares of company stock valued at $8,351,493 in the last quarter. Corporate insiders own 3.50% of the company’s stock.

Hedge Funds Weigh In On e.l.f. Beauty

A number of institutional investors have recently modified their holdings of the company. Price T Rowe Associates Inc. MD grew its position in shares of e.l.f. Beauty by 47.9% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,197,319 shares of the company’s stock valued at $167,086,000 after purchasing an additional 711,540 shares during the last quarter. State Street Corp boosted its stake in e.l.f. Beauty by 0.8% during the fourth quarter. State Street Corp now owns 1,737,181 shares of the company’s stock worth $132,095,000 after buying an additional 13,231 shares in the last quarter. Ensign Peak Advisors Inc boosted its position in shares of e.l.f. Beauty by 37.7% during the 4th quarter. Ensign Peak Advisors Inc now owns 1,319,523 shares of the company’s stock valued at $100,337,000 after acquiring an additional 361,371 shares in the last quarter. Morgan Stanley boosted its holdings in e.l.f. Beauty by 13.2% during the fourth quarter. Morgan Stanley now owns 1,184,786 shares of the company’s stock valued at $90,091,000 after purchasing an additional 138,415 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its position in e.l.f. Beauty by 17.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 620,252 shares of the company’s stock valued at $47,165,000 after acquiring an additional 94,026 shares during the period. Institutional investors own 92.44% of the company’s stock.

About e.l.f. Beauty

e.l.f. Beauty (NYSE: ELF) is an American cosmetics company known for offering an extensive range of affordable, trend-driven makeup and skincare products. The company’s portfolio spans foundations, lipsticks, mascaras, brushes, serums, masks and other beauty essentials, all positioned at accessible price points. e.l.f. Beauty maintains a direct-to-consumer platform through its e-commerce site and engages in widespread retail partnerships with major chains such as Target, Walmart, Ulta Beauty and Amazon.

Founded in 2004 and headquartered in Oakland, California, e.l.f.