Ulta Beauty, Inc. shares rose more than 7.6% on Friday after the company released its fourth quarter financial results following Thursday’s market close. Revenue rose 22.8% to $1.94 billion – in line with consensus estimates – while net income came of $2.75 per share missed consensus estimates by three cents per share. While the stock initially fell in after-hours trading, it moved sharply higher during the following session.
Analysts covering the stock were hoping to see stronger comparable sales growth. Telsey and Stifel analysts lowered their price targets to $250 and $225, respectively, citing valuation concerns and pressure on the broader beauty sector. Jefferies analysts came out more bullish than these analysts, adding Ulta to the firm’s Buy-rated stock ideas list. These analyst comments and a positive conference call sent shares higher to close out the week. (See also: Ulta Beauty Reports at Its ‘Reversion to the Mean’.)
Ulta Beauty shares moved sharply higher despite mixed fourth quarter results, but traders will be closely watching these key levels. …read more
Read more here: Ulta Beauty Stock Breaks Out Despite Mixed Earnings