Beauty supply retailer Sally Beauty (NYSE:SBH) will be reporting results this Tuesday before market hours. Here’s what investors should know.
Sally Beauty missed analysts’ revenue expectations by 2% last quarter, reporting revenues of $883.1 million, down 2.8% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ gross margin estimates.
Is Sally Beauty a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Sally Beauty’s revenue to decline 1.1% year on year to $932.3 million, a reversal from the 1.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.42 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sally Beauty has missed Wall Street’s revenue estimates six times over the last two years.
With Sally Beauty being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for specialty retail stocks. However, the whole sector has been hit hard over the last month as stocks in Sally Beauty’s peer group are down 2.1% on average. Sally Beauty is down 2.7% during the same time and is heading into earnings with an average analyst price target of $12 (compared to the current share price of $9.65).
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