Sally Beauty (SBH) To Report Earnings Tomorrow: Here Is What To Expect

Alright, folks! It's that time of the quarter again when Sally Beauty (SBH) is set to report its earnings. As investors, we're all eager to know what's in store for this beauty products retailer. So, let's dive in and see what we can expect from tomorrow's earnings call.

First things first, the market is expecting Sally Beauty to deliver a year-over-year increase in earnings on higher revenues. The consensus outlook is that the company will post quarterly earnings of $0.43 per share, representing a 10.3% year-over-year change. Revenues are expected to be $941.44 million, up 1.1% from the year-ago quarter. Not too shabby, right?

Now, let's talk about the estimate revisions trend. The consensus EPS estimate for the quarter has been revised 0.65% lower over the last 30 days to the current level. This means that analysts have collectively reassessed their initial estimates, and the aggregate change may not always reflect the direction of estimate revisions by each covering analyst.

But here's where things get interesting. The Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.18%. This positive Earnings ESP, combined with the company's Zacks Rank of #3 (Hold), suggests that Sally Beauty will most likely beat the consensus EPS estimate. So, if you're a glass-half-full kind of investor, you might want to keep an eye on this one.



Now, let's not forget about Sally Beauty's earnings surprise history. Over the last four quarters, the company has beaten consensus EPS estimates three times. In the last reported quarter, it delivered an earnings surprise of +4.17%. This positive earnings surprise history indicates that Sally Beauty has a track record of exceeding analyst expectations.

But what about the company's strategic initiatives? Sally Beauty has been focusing on owned brands and innovation to drive top-line growth. In the first quarter of fiscal 2024, these initiatives contributed over 200 basis points to the company's comparable sales results, with product innovation being the predominant driver. The company's owned brand sales penetration for the Global Sally Beauty segment increased to 34% in Q1, up 20 basis points from the prior year. And let's not forget about the strong performance of Sally Beauty's own brands, such as bondbar and Ion.

For the upcoming earnings report, Sally Beauty expects that product innovation, territory expansion, and new services will contribute 200 to 300 basis points to its top-line performance. The company has a pipeline of innovation planned for later this year, including several product launches across color, care, styling, and appliances, encompassing both proprietary lines and national brands. This focus on owned brands and innovation is expected to continue driving top-line growth for Sally Beauty in the coming quarters.

So, there you have it, folks! Sally Beauty is set to report its earnings tomorrow, and we've got a pretty good idea of what to expect. With a positive Earnings ESP and a history of earnings surprises, Sally Beauty might just be the beauty retailer to watch. But remember, an earnings beat or miss isn't the only factor that can influence a stock's price. Management's discussion of business conditions on the earnings call and other market dynamics can also play a significant role. So, keep your eyes peeled, and let's see what tomorrow brings!

Stay tuned, and happy investing!