Ulta Beats on Both Top and Bottom Lines

Ulta (Nasdaq: ULTA  ) reported earnings on June 11. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 4 (Q1), Ulta beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share expanded significantly.

Margins shrank across the board.

Revenue details
Ulta reported revenue of $582.7 million. The 12 analysts polled by S&P Capital IQ hoped for a top line of $576.3 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $474.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.65. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.62 per share. GAAP EPS of $0.65 for Q1 were 20% higher than the prior-year quarter's $0.54 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 35.0%, 100 basis points worse than the prior-year quarter. Operating margin was 11.6%, 50 basis points worse than the prior-year quarter. Net margin was 7.2%, 20 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $588.4 million. On the bottom line, the average EPS estimate is $0.67.

Next year's average estimate for revenue is $2.69 billion. The average EPS estimate is $3.33.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 348 members out of 393 rating the stock outperform, and 45 members rating it underperform. Among 123 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 give Ulta a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ulta is outperform, with an average price target of $99.33.

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