Ulta Salon, Cosmetics & Fragrance, Third Quarter Earnings Sneak Peek

Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) will unveil its latest earnings on Thursday, November 29, 2012. Ulta Salon, Cosmetics & Fragrances is a beauty retailer that provides one-stop shopping for salon products and salon services in the United States.

Ulta Salon, Cosmetics & Fragrance, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 56 cents per share, a rise of 33.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 54 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 56 cents during the last month. For the year, analysts are projecting profit of $2.61 per share, a rise of 37.4% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 3 cents, reporting net income of 54 cents per share against a mean estimate of profit of 51 cents per share.

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A Look Back: In the second quarter, profit rose 46.4% to $35 million (54 cents a share) from $23.9 million (38 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 22.1% to $481.7 million from $394.6 million.

Wall St. Revenue Expectations: On average, analysts predict $504.1 million in revenue this quarter, a rise of 22% from the year-ago quarter. Analysts are forecasting total revenue of $2.2 billion for the year, a rise of 23.6% from last year’s revenue of $1.78 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.65 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 22.4% over the last four quarters.

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 53.8% in the fourth quarter of the last fiscal year and 49.7% in the first quarter before increasing again in the second quarter.

Stock Price Performance: Between November 16, 2012 and November 23, 2012, the stock price rose $4.60 (5.3%), from $87.60 to $92.20. The stock price saw one of its best stretches over the last year between January 6, 2012 and January 19, 2012, when shares rose for nine straight days, increasing 11.3% (+$7.87) over that span. It saw one of its worst periods between May 2, 2012 and May 9, 2012 when shares fell for six straight days, dropping 7.7% (-$7.06) over that span.

Analyst Ratings: There are five out of nine analysts surveyed (55.6%) rating Ulta Salon, Cosmetics & Fragrance a buy.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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