e.l.f. Beauty (NYSE:ELF) Posts Earnings Results, Beats Estimates By $1.04 EPS

e.l.f. Beauty (NYSE:ELF) posted its earnings results on Wednesday. The company reported $1.75 earnings per share for the quarter, beating the consensus estimate of $0.71 by $1.04, FiscalAI reports. e.l.f. Beauty had a net margin of 1.61% and a return on equity of 11.02%. The business had revenue of $479.37 million for the quarter, compared to analyst estimates of $433.97 million. During the same quarter in the previous year, the business posted $0.89 EPS. The business’s quarterly revenue was up 35.5% on a year-over-year basis. e.l.f. Beauty updated its FY 2027 guidance to 3.500-3.550 EPS.

Here are the key takeaways from e.l.f. Beauty’s conference call:

• Q1 net sales rose 36%, marking e.l.f. Beauty’s 30th consecutive quarter of growth. Adjusted EBITDA increased 93% year over year, although results benefited from approximately $50 million in tariff refunds.
• Management raised fiscal 2027 guidance to 18%–20% net sales growth, adjusted EBITDA of $401 million–$407 million, and adjusted EPS of $3.50–$3.55, citing improving trends across e.l.f., Naturium, and Rhode.
• Rhode continued to materially outperform expectations, contributing approximately $160 million in Q1 sales and generating $27 million in direct-to-consumer sales in one day. The brand is scheduled to expand into Sephora across 19 European countries in September.
• The company is expanding its growth runway through e.l.f. Hair, international distribution, and new retail placements, including Boots in the U.K., Sephora Brazil, Dollar General for e.l.f. Skin, and Sephora Canada and Mexico for Naturium.
• Unit volumes declined approximately 3% in Q1, and management plans to reinvest the tariff refund through lower prices on about 10% of e.l.f. SKUs and higher marketing spending. Gross-margin benefits from the refund are therefore expected to be fully reinvested, while Rhode’s shift toward retail is expected to create mix pressure.

e.l.f. Beauty Stock Down 0.9%

ELF traded down $0.83 on Wednesday, reaching $87.01. The company’s stock had a trading volume of 5,062,330 shares, compared to its average volume of 2,295,668. e.l.f. Beauty has a 1 year low of $48.82 and a 1 year high of $150.99. The business’s 50 day moving average is $69.81 and its 200 day moving average is $71.54. The company has a debt-to-equity ratio of 0.72, a current ratio of 2.35 and a quick ratio of 1.69. The stock has a market cap of $5.13 billion, a price-to-earnings ratio of 189.16, a price-to-earnings-growth ratio of 3.42 and a beta of 1.58.

Insider Activity at e.l.f. Beauty

In other e.l.f. Beauty news, insider Jennifer Catherine Hartnett sold 25,357 shares of e.l.f. Beauty stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $80.00, for a total transaction of $2,028,560.00. Following the sale, the insider directly owned 28,699 shares in the company, valued at $2,295,920. The trade was a 46.91% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Mandy J. Fields sold 4,327 shares of the company’s stock in a transaction that occurred on Tuesday, June 9th. The shares were sold at an average price of $51.53, for a total value of $222,970.31. Following the completion of the transaction, the insider directly owned 106,961 shares in the company, valued at approximately $5,511,700.33. The trade was a 3.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 121,855 shares of company stock worth $8,351,493 over the last ninety days. Company insiders own 3.50% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Price T Rowe Associates Inc. MD grew its holdings in e.l.f. Beauty by 47.9% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,197,319 shares of the company’s stock worth $167,086,000 after acquiring an additional 711,540 shares in the last quarter. State Street Corp increased its position in shares of e.l.f. Beauty by 0.8% in the 4th quarter. State Street Corp now owns 1,737,181 shares of the company’s stock worth $132,095,000 after purchasing an additional 13,231 shares during the last quarter. Ensign Peak Advisors Inc raised its stake in shares of e.l.f. Beauty by 37.7% in the 4th quarter. Ensign Peak Advisors Inc now owns 1,319,523 shares of the company’s stock valued at $100,337,000 after purchasing an additional 361,371 shares in the last quarter. Morgan Stanley lifted its position in shares of e.l.f. Beauty by 13.2% during the fourth quarter. Morgan Stanley now owns 1,184,786 shares of the company’s stock worth $90,091,000 after purchasing an additional 138,415 shares during the last quarter. Finally, Dimensional Fund Advisors LP lifted its position in shares of e.l.f. Beauty by 17.9% during the fourth quarter. Dimensional Fund Advisors LP now owns 620,252 shares of the company’s stock worth $47,165,000 after purchasing an additional 94,026 shares during the last quarter. 92.44% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

ELF has been the topic of several research reports. The Goldman Sachs Group reissued a “buy” rating and issued a $95.00 price objective on shares of e.l.f. Beauty in a research report on Monday, July 27th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and issued a $64.00 target price on shares of e.l.f. Beauty in a research report on Tuesday, June 16th. UBS Group increased their target price on e.l.f. Beauty from $60.00 to $80.00 and gave the company a “neutral” rating in a research note on Thursday, July 16th. Jefferies Financial Group raised their target price on e.l.f. Beauty from $72.00 to $100.00 and gave the company a “buy” rating in a report on Tuesday, July 28th. Finally, Morgan Stanley reduced their price target on e.l.f. Beauty from $67.00 to $59.00 and set an “equal weight” rating on the stock in a research report on Thursday, May 21st. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $83.06.

e.l.f. Beauty News Roundup

Here are the key news stories impacting e.l.f. Beauty this week:

• Positive Sentiment: e.l.f. Beauty reported fiscal Q1 2027 revenue of $479.4 million, up 35.5% year over year and above the $434.0 million analyst estimate. Adjusted earnings were $1.75 per share, versus the $0.71 consensus and $0.89 a year earlier. e.l.f. Beauty Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: Management raised fiscal 2027 revenue-growth guidance to 18%–20%, from 12%–14%, and set EPS guidance at $3.50–$3.55, above the $3.12 consensus. The company cited continued momentum across its portfolio, including the acquired Rhode brand. e.l.f. Beauty Fiscal 2027 Results
• Neutral Sentiment: Rhode helped power growth, with sales benefiting from Hailey Bieber’s brand, but investors remain focused on whether e.l.f.’s legacy namesake business can reaccelerate after earlier price increases pressured unit volumes. Hailey Bieber’s Rhode Powers e.l.f. Beauty’s Sales Growth
• Negative Sentiment: Approximately $50 million of tariff refunds contributed to a roughly 14-percentage-point gross-margin improvement and nearly doubled net income. Because the refunds are viewed as nonrecurring, traders questioned the durability and quality of the reported profit surge. e.l.f. Beauty Tariff Refunds and Q1 Profits
• Negative Sentiment: Leverage remains elevated following the Rhode acquisition, with total debt of about $834 million at quarter-end. In addition, recent insider activity was heavily weighted toward selling, while the median analyst price target cited by Quiver Quantitative was $70, below the current trading level.

About e.l.f. Beauty

e.l.f. Beauty (NYSE: ELF) is an American cosmetics company known for offering an extensive range of affordable, trend-driven makeup and skincare products. The company’s portfolio spans foundations, lipsticks, mascaras, brushes, serums, masks and other beauty essentials, all positioned at accessible price points. e.l.f. Beauty maintains a direct-to-consumer platform through its e-commerce site and engages in widespread retail partnerships with major chains such as Target, Walmart, Ulta Beauty and Amazon.

Founded in 2004 and headquartered in Oakland, California, e.l.f.