Elf Beauty (ELF) rose nearly 4% in premarket trading Wednesday after the company posted better-than-expected earnings and revenue for the third quarter.
Earnings per share (EPS) were reported at $0.74, topping the consensus estimates of $0.57. Revenue came in at $270.9 million, ahead of the estimated $238.89 million.
Gross margin grew 350 basis points to 71% in the quarter, the company said.
For the full fiscal 2024, Elf Beauty sees EPS ranging from $2.84 to $2.87, ahead of the projected $2.74. Revenue is anticipated to land between $980 million and $990 million, also better than the $927.1 million expected by analysts.
“Our vision is to create a different kind of beauty company and you can see that in the exceptional, consistent, category-leading growth we’ve delivered,” said Tarang Amin, the company’s Chairman and CEO.
“In Q3, we grew net sales by 85% and market share by 305 basis points, marking our 20th consecutive quarter of growth in each. I’m extremely proud of our team and the progress we continue to make across color cosmetics, skin care and internationally.”
Jefferies analysts commended Elf’s quarterly performance, hiking their target price on the stock from $180 to $200.
“The brand continues to have momentum, and will be gaining shelf space in spring & summer of CY24. We are excited about the amount of runway for the company. PT moves to $200.” they wrote.