Benzinga | Mar 10, 2021 10:07AM EST

Ulta Beauty Earnings Preview

Ulta Beauty (NASDAQ:ULTA) announces its next round of earnings this Thursday, March 11. Here is Benzinga's everything-that-matters guide for this Thursday's Q4 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on management's projections, Ulta Beauty analysts model for earnings of $2.32 per share on sales of $2.07 billion. In the same quarter last year, Ulta Beauty posted EPS of $3.83 on sales of $2.31 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 39.43% decrease in the company's earnings. Sales would be down 10.23% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 1.49 0.06 0.68 3.73EPS Actual 1.64 0.73 -1.05 3.83Revenue Estimate 1.56 B 1.24 B 1.25 B 2.32 BRevenue Actual 1.55 B 1.23 B 1.17 B 2.31 B

Stock Performance

Shares of Ulta Beauty were trading at $339.05 as of March 09. Over the last 52-week period, shares are up 71.49%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Ulta Beauty is scheduled to hold the call at 17:00:00 ET and can be accessed here.