Post Earnings Coverage as e.l.f. Beauty’s Reported its First Annual Results

Upcoming AWS Coverage on Procter & Gamble Co.

LONDON, UK / ACCESSWIRE / March 22, 2017 / Active Wall St. announces its post-earnings coverage on e.l.f. Beauty, Inc. (NYSE: ELF). The Company released its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) on March 08, 2017. The Oakland, California-based Company’s quarterly net sales grew 17% y-o-y, outperforming market consensus estimates. Register with us now for your free membership at:

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One of e.l.f. Beauty’s competitors within the Personal Products space, The Procter & Gamble Company (NYSE: PG), is estimated to report earnings on April 25, 2017. AWS will be initiating a research report on Procter & Gamble following the release of its next earnings results.

Today, AWS is promoting its earnings coverage on ELF; touching on PG. Get our free coverage by signing up to:

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Earnings Reviewed

During the quarter ended on December 31, 2016, e.l.f. Beauty recorded net sales of $76.44 million compared to $65.44 million at the end of Q4 FY15. Net sales numbers for Q4 FY16 topped market consensus estimates of $74 million.

The luxurious beauty cosmetics maker reported net income attributable to common stockholders of $6.38 million, or $0.13 per diluted share, in Q4 FY16 compared to net loss attributable to common stockholders of $39.71 million, or $1,151.13 per diluted share, in Q4 FY15. The Company’s adjusted net income increased 36% to $9.44 million in Q4 FY16 from $6.93 million in Q4 FY15. Additionally, adjusted pro-forma diluted earnings for the reported quarter stood at $0.19 per diluted share in Q4 FY16 compared to $0.14 per diluted share in the prior year’s same quarter. Wall Street had expected the Company to report adjusted pro-forma diluted earnings of $0.04 per share.

In FY16, e.l.f. Beauty’s revenue came in at $229.57 million compared to $191.41 million in the previous year. The Company reported net loss attributable to common stockholders of $497.54 million, or $39.47 loss per diluted share, in FY16 versus net loss attributable to common stockholders of $47.61 million, or $1,559.81 loss per diluted share, in FY15. The Company’s adjusted net income increased 33% to $18.21 million in FY16 from $13.72 million in FY15. Furthermore, adjusted pro-forma diluted earnings for FY16 stood at $0.36 per diluted share compared to $0.27 per diluted share in FY15.

Operational Metrics

For the reported quarter, the Company’s gross profit came in at $45.32 million versus $35.03 million in the prior year’s same quarter. Due to margin accretive innovation, the Company’s gross margin expanded to 59% in Q4 FY16 from 54% in the year ago comparable quarter.

During Q4 FY16, the Company spent $30.35 million on selling, general, and administrative expenses compared to $24.09 million in the previous year’s same period. The Company’s operating income rose during Q4 FY16 to $14.97 million from $10.94 million in Q4 FY15. Additionally, the Company reported adjusted EBITDA of $22.12 million in Q4 FY16 versus $17.57 million in Q4 FY15.

Cash Flow and Balance Sheet

In the year ended December 31, 2016, net cash provided by operating activities was $2.12 million compared to $24.52 million in FY15. As on December 31, 2016, the Company had $15.30 million in cash compared to a cash balance of $14.00 million as on December 31, 2015. The Company reported long-term debt of $156.18 million in its books of accounts as on December 31, 2016, rising from $134.59 million as on December 31, 2015.

IPO

On September 21, 2016, e.l.f. Beauty had announced the pricing of its initial public offering of 8.33 million shares of its common stock at a public offering price of $17.00 per share. The shares began trading on September 22, 2016, on the New York Stock Exchange under the ticker symbol “ELF.”

Outlook

In its guidance for full-year FY17, e.l.f. Beauty’s management expects net sales to be in range of $285 million to $295 million. Adjusted EBITDA for FY17 is anticipated to be between $61 million and $64 million. The Company projects FY17 adjusted net income range of $21 million to $23 million with adjusted pro-forma diluted EPS in the range of $0.40 to $0.43.

Stock Performance

At the close of trading session on Tuesday, March 21, 2017, e.l.f. Beauty’s stock price slightly declined 0.50% to end the day at $26.07. A total volume of 447.60 thousand shares were exchanged during the session, which was above the 3-month average volume of 446.21 thousand shares. The stock currently has a market cap of $1.19 billion.

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