Beauty supply retailer Sally Beauty (NYSE:SBH) will be announcing earnings results tomorrow before market open. Here's what to look for.
Last quarter Sally Beauty reported revenues of $921.4 million, down 4.3% year on year, missing analyst expectations by 1.1%. It was a slower quarter for the company, with a miss of analysts' earnings and revenue estimates.
Is Sally Beauty buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Sally Beauty's revenue to decline 3% year on year to $928.6 million, a further deceleration on the 2.4% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates four times over the last two years.
With Sally Beauty being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for specialty retail stocks, but the whole sector has been facing a sell-off since late last year, with stocks down on average 3.6% over the last month. Sally Beauty is down 5.8% during the same time, and is heading into the earnings with analyst price target of $11.8, compared to share price of $12.5.
The author has no position in any of the stocks mentioned.