Ulta Salon, Cosmetics & Fragrance Second Quarter Earnings Sneak Peek

Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) will unveil its latest earnings on Thursday, September 6, 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 analyst estimate is for net income of 51 cents per share, a rise of 34.2% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 48 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 51 cents during the last month. Analysts are projecting profit to rise by 34.2% versus last year to $2.55.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting profit of 54 cents per share against a mean estimate of net income of 53 cents per share.

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A Look Back: In the first quarter, profit rose 49.7% to $34.9 million (54 cents a share) from $23.3 million (37 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 22.8% to $474.1 million from $386 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 20.1% in revenue from the year-earlier quarter to $473.8 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.61 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. The company regressed in this liquidity measure from 3.52 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 56.2% to $257.4 million while assets rose 16% to $673.1 million.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 22.5% over the last four quarters.

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 88.5% in the third quarter of the last fiscal year and 53.8% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Stock Price Performance: From August 2, 2012 to August 30, 2012, the stock price rose $8.38 (9.8%), from $85.25 to $93.63. 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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