Core Viewpoint - Berman Tabacco is investigating potential securities law violations by e.l.f. Beauty, Inc. following significant concerns regarding the company's revenue and a notable decline in its stock price [1][2]. Investigation Details - On November 20, 2024, concerns were raised by the CEO of Muddy Waters Capital, who indicated he was shorting e.l.f. Beauty's stock due to revenue-related issues [2]. - On February 7, 2025, e.l.f. Beauty's shares experienced a decline of up to 28% after the company lowered its fiscal-year projections for sales and profits [2]. Company Background - e.l.f. Beauty, Inc. is a cosmetics company based in Oakland, California, and is publicly traded on the NYSE under the ticker symbol ELF [1]. - Berman Tabacco has a long history of prosecuting securities cases on behalf of investors and has received recognition for its work in this field [3].

Core Insights - The article discusses the investment positions of Parkev Tatevosian, CFA, and mentions that The Motley Fool has positions in and recommends e.l.f. Beauty [1] Company Insights - e.l.f. Beauty is highlighted as a recommended stock by The Motley Fool, indicating a positive outlook on the company's performance and potential for growth [1]

Group 1 - e.l.f. Beauty has warned about slowing sales in January 2025, leading to a lowered fiscal full year 2025 guidance and a significant drop in shares [1] - The company reported fiscal third quarter 2025 earnings of $0.74, missing the Zacks Consensus estimate of $0.76, despite a 31% increase in sales to $355.3 million [2][4] - Gross margin increased by 40 basis points to 71%, attributed to favorable foreign exchange impacts, cost savings, and inventory adjustments, although offset by higher transportation costs [3] Group 2 - e.l.f. Beauty has revised its fourth quarter and full year guidance, now expecting a 27-28% year-over-year net sales increase, down from 28-30%, and lowering full year earnings guidance to $3.27 to $3.32 from $3.47 to $3.53 [4] - Analysts have cut their fiscal 2025 estimates, with the Zacks Consensus dropping from $3.60 to $3.33, indicating only 4.7% earnings growth over fiscal 2024 [5] - For fiscal 2026, estimates were also reduced, with the Zacks Consensus falling from $4.35 to $3.63, still reflecting a 9.1% earnings growth [6] Group 3 - e.l.f. Beauty shares have declined 54% over the last year, exacerbated by the lowered guidance, although they remain above the S&P 500's performance over the past five years [7] - The company, once a high-growth stock post-pandemic, now trades at a forward P/E of 21.9, which is still above typical value stock levels [8]

Group 1 - e.l.f. Beauty has an average brokerage recommendation (ABR) of 1.67, indicating a consensus between Strong Buy and Buy from 18 brokerage firms, with 66.7% of recommendations being Strong Buy [2][4] - The ABR should not be the sole basis for investment decisions, as studies suggest brokerage recommendations often lack success in guiding investors towards stocks with significant price appreciation potential [4][9] - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, with a ratio of five "Strong Buy" recommendations for every "Strong Sell" [5][9] Group 2 - The Zacks Rank, a proprietary stock rating tool, is a more reliable indicator of near-term price performance, classifying stocks from Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell) [7][10] - The Zacks Rank is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements, unlike the ABR which may not be up-to-date [10][11] - For e.l.f. Beauty, the Zacks Consensus Estimate for the current year has declined by 14.7% to $3.33, leading to a Zacks Rank 5 (Strong Sell) due to analysts' growing pessimism about the company's earnings prospects [12][13]

Group 1: Ulta Beauty - Ulta Beauty has seen its stock decline by 27% over the past year, facing challenges from a shifting economic environment and increased competition [1][3] - In Q3, comparable-store sales increased by only 0.6% year over year, a significant slowdown from the previous year's 4.5% [4] - Despite recent underperformance, Ulta Beauty remains profitable with solid fundamentals and anticipates a robust holiday shopping season, guiding for positive comparable sales and a modestly higher operating margin [5][6] Group 2: e.l.f. Beauty - e.l.f. Beauty has experienced a 55% decline in stock price over the past year but has been successful in democratizing makeup with affordable, professional-grade products [1][8] - The company has maintained an impressive growth record with 24 consecutive quarters averaging over 20% growth, although it faced a slowdown in Q3 of fiscal 2025 with a 31% sales increase compared to an exceptional 85% growth last year [9][10] - e.l.f. Beauty is targeting 27% to 28% revenue growth for full-year 2025, with adjusted EPS around $3.30, reflecting a 4% increase from 2024 [11] - The stock trades at a forward P/E ratio of 22, which is higher than Ulta Beauty's 16, but its stronger growth outlook justifies this premium valuation [12]

e.l.f. Beauty (ELF 4.17%) shareholders have been on a rollercoaster ride over the past few years. The emerging makeup and skincare brand has been stealing market share from industry incumbents thanks to its affordable price points and its social media-savvy marketing strategy. Shares began soaring in mid-2022, gaining more than 700% by the time they reached the peak in mid-2024.Unfortunately, roller coasters don't just go up. Since hitting its peak, e.l.f. stock has tumbled about 66%. While the stock is sti ...

e.l.f. Beauty (NYSE: ELF ) has had strong sales growth, market share gains, and earnings growth in the past few years due to its ability to sell prestige quality makeup and skincare at a fraction of theAnalyst’s Disclosure: I/we have a beneficial long position in the shares of ELF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship ...

e.l.f. Beauty (NYSE: ELF ) was overvalued for much of 2023 and 2024 and has now returned to the real world. In terms of multiples, e.l.f. is therefore trading well below the average of the last few years and moreMy primary area of concentration will be on identifying companies of exceptional caliber, with a proven ability to reinvest capital for impressive returns. Targeting those with a market capitalization of less than $10 billion, affords ample opportunities for growth. The ideal scenario is for these c ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 _______________________________________________________________ FORM 10-Q _______________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from ______ to ______ Commission F ...

Shares of cosmetics company e.l.f. Beauty (ELF -19.48%) were crushed on Friday after the company reported financial results for its third quarter of 2025. As of 2:30 p.m. ET today, e.l.f. Beauty stock was down 19%. That was slightly better than the 28% it was down earlier in the day, but it was a painful drop nonetheless.The growth is suddenly goneE.l.f. Beauty stock is now down nearly 70% from its all-time high and down over 40% year to date, so allow me to cut to the chase of the problem: Management said ...