Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ: ULTA)
Ulta Salon is having an incredible day in the market today, and for good reason. The company has released an update with regard to its sales outlook, as well as its profit outlook, for the third quarter. Today, we’ll talk about the updated outlook, how the stock is reacting to the news, and what we can expect to see from ULTA moving forward.
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ULTA Updates Profit And Sales Outlook
As mentioned above, Ulta Salon is having a very strong day in the market today after providing an updated outlook with regard to its profit and sales for the fiscal third quarter. Here’s what the compay provided:
- Earnings Per Share – Previously, ULTA said that it was expecting to earn between $1.25 and $1.30 per share in the third quarter. However, the company has now increased that guidance to between $1.35 per share and $1.38 per share. This is overwhelmingly positive, as it is not only a guidance increase, but the figure is above the current consensus of $1.30 per share.
- Same Store Sales Growth – Previously, the company expected that, in terms of same store sales growth throughout the quarter, it would see growth in the range between 11% and 13%. Now, the company is projecting that it will report same store sales growth for the quarter between 14% and 15%. This is also above the current consensus of 12.6%.
How The Stock Reacted To The News
At the end of the day, the news moves the market. It’s one of the first things that investors learn. In this particular case, the news was overwhelmingly positive. After all, any time a company reports expectations of beating guidance and consensus estimates with regard to earnings, investors are going to get excited. And that’s exactly what Ulta Salon did. As a result, the stock is skyrocketing in the market today. Currently (12:06), the stock is trading at $262.70 per share after a gain of $23.61 per share (9.88%) thus far today.
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What We Can Expect To See Moving Forward
Moving forward, I have a relatively bullish opinion of what we can expect to see from ULTA. At the end of the day, investors are ultimately investing for growth. When it comes to Ulta Salon, the company is showing that it has the ability to grow, and that, when it works hard enough at it, it will see growth stronger than even it predicted. All in all, the news today was overwhelmingly positive and will likely keep excitement surrounding the stock for some time. As a result, I’m expecting to see further gains out of ULTA.
What Do You Think?
Where do you think ULTA is headed moving forward? Join the discussion in the comments below!
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