Sally Beauty Holdings Earnings: Everything You Must Know Now

Sally Beauty Holdings Inc. (NYSE:SBH) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Sally Beauty Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 2.86% to $0.36 in the quarter versus EPS of $0.35 in the year-earlier quarter.

Revenue: Rose 1% to $898.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sally Beauty Holdings Inc. reported adjusted EPS income of $0.36 per share. By that measure, the company missed the mean analyst estimate of $0.39. It missed the average revenue estimate of $920.64 million.

Quoting Management: “Our fundamental business drivers are solid and we executed well on our operating initiatives in the second quarter,” stated Gary Winterhalter, Chairman, President and Chief Executive Officer. “Our financial performance reflects the difficult comparisons against record growth in certain product categories in the prior year and lower traffic driven in part by two fewer days compared to the prior year quarter. We are optimistic that same store sales growth in the second half of fiscal year 2013 will be 3% to 4%, resulting in full year growth of 2.0% to 2.5%. We are pleased with our capability to drive shareholder value via our stock buy back initiatives. From May 2012 through March 2013, we have purchased 19.6 million shares spending over half-a-billion dollars; as of March 31st, we had $653 million remaining on our current authorization.”

Key Stats (on next page)…

Revenue decreased 0.8% from $905.44 million in the previous quarter. EPS increased 12.5% from $0.32 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.44 and has not changed. For the current year, the average estimate has moved down from a profit of $1.61 to a profit of $1.58 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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