Sally Beauty Holdings Up 13.65% To $9.24 After Earnings Miss

Sally Beauty Holdings Inc (SBH) missed earnings projections on 11/14/2023 for Q4 2023.

The consensus among analysts for Sally Beauty Holdings was for an earnings per share (EPS) of $0.46. The firm failed to meet those projections, reporting an EPS of $0.42, a negative surprise of $0.04 (-9%). Profits fell 16% year-over-year after reporting an EPS of $0.50 in its year-ago quarter. The negative growth rate signals that the Consumer Cyclical company isn't performing well amid current economic conditions.

Consensus estimates for Sally Beauty Holdings revenue averaged out to $930.5 million, with the business missing on those expectations with reported fourth-quarter revenue of $921.4 million. The $9.1 million (1%) negative revenue surprise led to negative 4% growth year-over-year as the firm reported revenue of $962.5 million in its year-ago quarter. The lower earnings growth compared to revenue points to Sally Beauty Holdings not being able to improve its profit margin.

The stock is up 13.65% to $9.24 after the report.

Sally Beauty Holdings's profit margins took a hit as earnings fell at a faster pace than revenues.

Wall Street Analysts had an average rating of Hold on the stock prior to the report.

InvestorsObserver gives the stock a Neutral Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 0. Meanwhile, the average Wall Street analyst rated the stock a Hold.

Sally Beauty Holdings Inc is a professional beauty-products retailer based in the United States. Sally Beauty operates throughout the United States, Puerto Rico, the United Kingdom, Belgium, Canada, Chile, Colombia, Mexico, Peru, France, Ireland, Spain, Germany, and the Netherlands. The company operates through two business segments: Sally Beauty Supply and Beauty Systems Group. Product offerings include hair color and care, hair dryers and hair-styling appliances, nail care, skin care, and others.