Stock Story -
Beauty supply retailer Sally Beauty (NYSE:SBH) will be reporting earnings tomorrow morning. Here's what investors should know.
Sally Beauty met analysts' revenue expectations last quarter, reporting revenues of $908.4 million, down 1.1% year on year. It was a slower quarter for the company, with a miss of analysts' earnings estimates.
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This quarter, analysts are expecting Sally Beauty's revenue to be flat year on year at $931.7 million, improving from the 3.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.40 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sally Beauty has missed Wall Street's revenue estimates three times over the last two years.
With Sally Beauty being the first among its peers to report earnings this season, we don't have anywhere else to look to get a hint at how this quarter will unravel for specialty retail stocks. However, the whole sector has been hit hard over the last month as stocks in Sally Beauty's peer group are down 2.4% on average. Sally Beauty is down 7.6% during the same time and is heading into earnings with an average analyst price target of $11.2 (compared to the current share price of $9.78).