Stock Track | e.l.f. Beauty Plunges 6.8% in After-hours Despite Q1 Earnings Beat and Upbeat FY2027 Outlook

Stock Track08-06

Shares of e.l.f. Beauty Inc. (ELF) tumbled 6.8% in after-hours trading on Wednesday, reversing earlier gains even after the cosmetics company reported fiscal first-quarter results that handily beat analyst expectations and raised its full-year outlook.

The sell-off came despite a strong earnings report. For the quarter ended June 30, e.l.f. Beauty posted adjusted earnings of $1.75 per share, more than doubling the consensus estimate of $0.71 per share. Net sales surged 35.5% year-over-year to $479.37 million, also surpassing Wall Street's forecast of $429.5 million. The company also issued an optimistic forecast for fiscal 2027, guiding for adjusted earnings per share between $3.50 and $3.55 on net sales of $1.94 billion to $1.97 billion, both well above analyst projections.

The decline in the stock during after-hours trading suggests that the robust results and outlook may have already been priced in following a strong quarterly performance and a positive pre-market analyst upgrade. Earlier in the day, Bernstein raised its rating on e.l.f. Beauty to "Outperform" from "Market-Perform" and boosted its price target to $113 from $60, sending shares up 2.5% in pre-market action. The sharp post-market reversal indicates a potential "sell the news" reaction by investors.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment