ULTA Earnings: Double-Digit Profit and Revenue Growth

Ulta Salon Cosmetics & Fragrance Inc. (NASDAQ:ULTA) reported higher profit for the first quarter as revenue showed growth. Ulta Salon, Cosmetics & Fragrances is a beauty retailer that provides one-stop shopping for salon products and salon services in the United States.

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Ulta Salon Cosmetics & Fragrance Inc. Earnings Cheat Sheet

Results: Net income for Ulta Salon Cosmetics & Fragrance Inc. rose to $34.9 million (54 cents per share) vs. $23.3 million (37 cents per share) in the same quarter a year earlier. This marks a rise of 49.7% from the year-earlier quarter.

Revenue: Rose 22.8% to $474.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ulta Salon Cosmetics & Fragrance Inc. beat the mean analyst estimate of 53 cents per share. Analysts were expecting revenue of $473.9 million.

Quoting Management: Chuck Rubin, President and Chief Executive Officer of Ulta stated, “2012 is off to a great start. Our team delivered another quarter of excellent financial performance by continuing to execute on our five point strategy of accelerating store growth, introducing our guests to new brands, products, and services, enhancing our loyalty program, broadening our marketing reach, and increasing our focus on Ulta.com. In the first quarter we grew net sales by 23%, driven by strong new store performance and double digit same store sales.”

Key Stats:

For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 22.2%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 23% from the year earlier quarter.

The company has now seen its net income rise for three quarters in a row. In the fourth quarter of the last fiscal year, net income rose 53.8% and in the third quarter of the last fiscal year, the figure rose 88.5%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 5 cents in the fourth quarter of the last fiscal year, by 4 cents in the third quarter of the last fiscal year, and by 6 cents in the second quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the second quarter has moved up from 47 cents a share to 48 cents over the last thirty days. For the fiscal year, the average estimate has moved up from $2.33 a share to $2.50 over the last ninety days.

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

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