E.l.f. Beauty’s Guidance Sinks Stock Despite Blowout Earnings

Shares of e.l.f. Beauty (ELF) tumbled on Friday after the cosmetics and beauty products maker gave a weaker-than-expected outlook after posting a monster quarter.

E.l.f. sees full-year adjusted earnings per share (EPS) of $3.36 to $3.41, and revenue in the range of $1.28 billion to $1.30 billion. While those were higher than the company’s previous guidance, analysts had been looking for better.

The news offset e.l.f.’s blowout fiscal 2025 first-quarter results. Adjusted EPS came in at $1.10, 25 cents more than the average forecast of analysts surveyed by Visible Alpha. Revenue soared 50% to $324.5 million, also well above estimates.

The company said the jump in revenue was powered by strong retail and e-commerce channels which gained 43% and 105%, respectively. Gross profit was boosted by higher prices and volumes.

CEO Tarang Amin noted that this was the company’s 22nd consecutive quarter of both net sales growth and market share gains. He said that puts e.l.f. “in a rarified group of high growth consumer companies.” 

E.l.f. Beauty shares fell more than 14% on Friday. Despite that loss, the stock remains nearly 12% higher for 2024.