e.l.f. Beauty shares slide 8% despite Q3 EPS beat and raised guidance
e.l.f. Beauty posted Q3 adjusted EPS of $1.24 versus $0.72 consensus and revenue of $489.5 million, with net sales up 38% year-over-year. The company raised full-year adjusted EPS guidance to $3.05-3.10 and revenue outlook to $1.60-1.61 billion, but shares slid 8% on profit-taking and bearish technical readings.
1. Third-Quarter Performance
e.l.f. Beauty delivered adjusted EPS of $1.24 versus $0.72 consensus and reported revenue of $489.5 million compared with $459.1 million expected. Net sales increased 38% year-over-year across U.S. and international retail and e-commerce channels, while gross margin narrowed to 71% due to higher tariffs and mix shifts.
2. Raised Full-Year Outlook
Management lifted full-year adjusted EPS guidance to a range of $3.05–$3.10 from $2.80–$2.85 and boosted revenue outlook to $1.60–$1.61 billion from $1.55–$1.57 billion, both above prior targets and street estimates.
3. Market Reaction and Technical Indicators
Shares fell 8% on Monday as investors took profits after the initial post-earnings rally, trading 13.9% below the 20-day moving average and 24.6% below the 100-day average. The RSI sits at 46.7 with MACD below its signal line, signaling mixed momentum, and an analyst maintained a Buy rating while cutting the price target from $110 to $100.