Personal Finance
ELF

Shares of e.l.f. Beauty, Inc. Plunge 28% on Lowered Full-Year Guidance

A woman having multiple cosmetic products applied to her face.

What happened

Shares of e.l.f. Beauty, Inc. (NYSE: ELF) , a multi-channel brand retailer and distributor of high-quality cosmetic and skin care products, plunged 28% as of 1:38 p.m. EDT Thursday after announcing second-quarter earnings.

So what

Revenue during the second quarter increased 6% to $59.1 million, compared to the prior year, which was in line with analysts' estimates. Adjusted earnings-per-share checked in at $0.13, which is more than double analysts' estimates calling for adjusted earnings of $0.06 per share.

A woman having multiple cosmetic products applied to her face.

Image source: Getty Images.

In a press release, Chairman and CEO Tarang Amin said:

Now what

Despite meeting estimates on the top line and beating them on the bottom line, its outlook for the rest of the year raised concern. Management lowered its full-year 2018 revenue guidance to low single digits from its prior range of between 6% and 8% . It lowered its adjusted EBITDA from a range of $65 million to $66.5 million down to between $58 million and $62 million. It also dropped the bottom end of its adjusted earnings per share from $0.59 per share down to $0.56 per share, while leaving the top end at $0.61 per share.

Management made it clear that it's time to increase investment behind its brands because the competition for younger consumers is fierce, but that's a move that came late and could make the back half of 2018 a little more painful than anticipated.

10 stocks we like better than e.l.f. Beauty, Inc.

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and e.l.f. Beauty, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of August 6, 2018

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

ELF

Other Topics

Stocks

Latest Personal Finance Videos

    #TradeTalks: The Changing E-Commerce Landscape

    e-Commerce Consultant James Thomson joins Jill Malandrino on Nasdaq #TradeTalks to discuss the changing e-commerce landscape, what consumers should prepare for as we head into shopping season and why you shouldn’t do last minute shipping.

    5 days ago

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More