E.l.f. Beauty, Inc. (NYSE:ELF) shares were trading higher before reversing and moving lower after the company reported better-than-expected third-quarter financial results and raised its fiscal-year 2026 guidance above estimates Wednesday after the market closed.
Earnings Beat And Guidance Raised
E.l.f reported adjusted earnings per share of $1.24, beating the consensus estimate of 72 cents. In addition, the company reported revenue of $489.50 million, beating the consensus estimate of $459.10 million.
E.l.f. said third-quarter net sales increased 38% year over year, driven by growth across retailer and e-commerce channels in the U.S. and internationally. Gross margin declined to 71%, reflecting higher tariff costs that were partially offset by pricing and mix benefits.
Adjusted EBITDA rose 79% year over year to $123.0 million, representing 25% of net sales. GAAP net income totaled $39.4 million, while adjusted net income was $74.5 million.
E.l.f. raised its fiscal-year adjusted earnings per share guidance from between $2.80 and $2.85 to between $3.05 and $3.10 versus the consensus estimate of $2.87. Furthermore, it raised its revenue guidance from between $1.55 billion and $1.57 billion to between $1.60 billion and $1.61 billion, versus the consensus estimate of $1.56 billion.
ELF Shares Fall Lower
ELF Price Action: At the time of publication, ELF shares are trading 4.14% lower at $81.13, according to data from Benzinga Pro.
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