Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive focuses on sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Group 2 - Proactive has a strong emphasis on technology adoption to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Viewpoint - E.l.f. Beauty achieved its first billion-dollar fiscal year with a 77% increase in sales, but shares fell due to lower growth expectations [1][2]. Financial Performance - The company reported a net income of $14.53 million (25 cents per share) for the fourth fiscal quarter, down from $16.25 million (29 cents per share) a year earlier. Adjusted earnings were 53 cents per share [1][8]. - Sales for the fourth quarter reached $321.1 million, a 71% increase from $187.4 million a year prior. For the full year, sales totaled $1.02 billion, marking a 77% growth [2]. Future Guidance - E.l.f. expects net sales between $1.23 billion and $1.25 billion, representing a 20% to 22% increase, which is below analysts' expectations of $1.27 billion (27.4% growth). Adjusted net income is forecasted to be between $187 million and $191 million, with adjusted earnings between $3.20 and $3.25 per share, also below analyst expectations [4]. Industry Context - Ulta Beauty's CEO indicated a cooling demand in the cosmetics sector, which negatively impacted E.l.f. and other beauty stocks. This sentiment suggests a potential moderation in growth for the beauty industry [5][6].

Financial Performance Overview [Fourth Quarter Fiscal 2024 Performance](index=1&type=section&id=Fourth%20Quarter%20Fiscal%202024%20Performance) In Q4 FY2024, e.l.f. Beauty achieved a 71% increase in net sales to $321.1 million, driven by strong performance in retailer and e-commerce channels. Gross margin improved to 71%, and the company marked its 21st consecutive quarter of net sales and market share growth, expanding its market share by 325 basis points - Marked the **21st consecutive quarter of net sales growth** and expanded market share by **325 basis points** in Q4[2](index=2&type=chunk) Q4 Fiscal 2024 Key Financial Metrics | Metric | Q4 FY2024 | Q4 FY2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $321.1M | $187.4M | +71% | | Gross Margin | 71% | 69% | +180 bps | | Net Income (GAAP) | $14.5M | $16.2M | -10.6% | | Adjusted Net Income | $30.8M | $23.8M | +29.4% | | Diluted EPS (GAAP) | $0.25 | $0.29 | -13.8% | | Adjusted Diluted EPS | $0.53 | $0.42 | +26.2% | | Adjusted EBITDA | $40.9M | $21.2M | +93% | [Full Year Fiscal 2024 Performance](index=1&type=section&id=Full%20Year%20Fiscal%202024%20Performance) For the full fiscal year 2024, the company delivered record performance, with net sales surpassing $1 billion, a 77% increase year-over-year. Gross margin expanded by 330 basis points to 71%, and Adjusted EBITDA more than doubled, growing 101% to $234.7 million - Achieved over **$1 billion in net sales** for the first time, marking the strongest year of net sales growth on record[1](index=1&type=chunk)[2](index=2&type=chunk) - e.l.f. Cosmetics brand gained market share for the **fifth consecutive year**[1](index=1&type=chunk) Full Year Fiscal 2024 Key Financial Metrics | Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,023.9M | $578.8M | +77% | | Gross Margin | 71% | 67% | +330 bps | | Net Income (GAAP) | $127.7M | $61.5M | +108% | | Adjusted Net Income | $183.8M | $91.8M | +100% | | Diluted EPS (GAAP) | $2.21 | $1.11 | +99% | | Adjusted Diluted EPS | $3.18 | $1.66 | +92% | | Adjusted EBITDA | $234.7M | $116.8M | +101% | Financial Position and Strategic Moves [Balance Sheet Summary](index=3&type=section&id=Balance%20Sheet%20Summary) As of March 31, 2024, the company held $108.2 million in cash and cash equivalents, a decrease from $120.8 million the previous year. Long-term debt and finance lease obligations increased significantly to $161.8 million from $60.9 million, largely reflecting financing for strategic initiatives Balance Sheet Highlights (as of March 31) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $108.2M | $120.8M | | Long-term debt and finance lease obligations | $161.8M | $60.9M | [Naturium Acquisition](index=3&type=section&id=Naturium%20Acquisition) On October 4, 2023, e.l.f. Beauty completed the acquisition of Naturium, a high-growth skincare brand, for $333.0 million in cash and stock. This strategic move aims to strengthen the company's skincare portfolio and support its mission of making quality beauty accessible - Closed the acquisition of skincare brand Naturium on **October 4, 2023**[5](index=5&type=chunk) - The total consideration for the acquisition was **$333.0 million**, paid through a combination of cash and company stock[5](index=5&type=chunk) Future Outlook [Fiscal 2025 Guidance](index=3&type=section&id=Fiscal%202025%20Guidance) The company projects strong continued growth for fiscal 2025, forecasting a 20-22% increase in net sales to a range of $1,230-$1,250 million. Adjusted EBITDA is expected to be between $285-$289 million, with adjusted diluted EPS anticipated in the range of $3.20-$3.25 Fiscal 2025 Outlook vs. Fiscal 2024 Actuals | Metric | Fiscal 2025 Outlook | Fiscal 2024 Actuals | | :--- | :--- | :--- | | Net sales | $1,230 - $1,250 M | $1,024 M | | Adjusted EBITDA | $285 - $289 M | $235 M | | Adjusted net income | $187 - $191 M | $184 M | | Adjusted diluted EPS | $3.20 - $3.25 | $3.18 | - The outlook for fiscal 2025 reflects an expected **20-22% increase in net sales** compared to fiscal 2024[6](index=6&type=chunk) Detailed Financial Statements (GAAP) [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statements of operations detail the company's financial performance, showing a significant increase in net sales from $578.8 million in FY2023 to $1,023.9 million in FY2024. Net income more than doubled, rising from $61.5 million to $127.7 million Consolidated Statements of Operations (Year-End) | (in thousands) | Twelve months ended March 31, 2024 | Twelve months ended March 31, 2023 | | :--- | :--- | :--- | | Net sales | $1,023,932 | $578,844 | | Gross profit | $724,096 | $390,396 | | Operating income | $149,678 | $68,143 | | Net income | $127,663 | $61,530 | | Diluted EPS | $2.21 | $1.11 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet as of March 31, 2024, reflects significant growth, with total assets nearly doubling to $1.13 billion from $595.6 million in the prior year. This growth was driven by increases in goodwill and intangible assets, largely due to the Naturium acquisition, and financed through increased debt and equity Consolidated Balance Sheet Highlights | (in thousands) | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Total current assets | $477,077 | $303,325 | | Total assets | $1,129,247 | $595,601 | | Total current liabilities | $299,115 | $107,976 | | Total liabilities | $486,675 | $184,584 | | Total stockholders' equity | $642,572 | $411,017 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For fiscal year 2024, net cash provided by operating activities was $71.2 million, a decrease from $101.9 million in the prior year, primarily due to significant investments in inventory and accounts receivable to support growth. Net cash used in investing activities was $284.7 million, mainly for the Naturium acquisition, while financing activities provided $200.9 million Consolidated Cash Flow Summary (Year-End) | (in thousands) | Twelve months ended March 31, 2024 | Twelve months ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $71,154 | $101,883 | | Net cash used in investing activities | ($284,660) | ($1,723) | | Net cash provided by (used in) financing activities | $200,945 | ($22,735) | | Net (decrease) increase in cash | ($12,595) | $77,425 | | Cash and cash equivalents - end of period | $108,183 | $120,778 | Non-GAAP Financial Measures and Reconciliations [Explanation of Non-GAAP Measures](index=4&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company utilizes non-GAAP measures such as adjusted EBITDA, adjusted SG&A, and adjusted net income to provide supplemental insight into its operating performance. These measures exclude items like stock-based compensation, acquisition-related costs, and other non-recurring expenses to facilitate comparison - The company presents non-GAAP measures because management uses them as supplemental tools to assess operating performance and believes they are helpful for investors[12](index=12&type=chunk) - Key adjustments to derive non-GAAP figures include excluding expenses related to stock-based compensation, impairment of equity investment, loss on extinguishment of debt, amortization of acquired intangibles, and other non-recurring items like acquisition and ERP implementation costs[13](index=13&type=chunk)[14](index=14&type=chunk)[16](index=16&type=chunk) [Reconciliation of Net Income to Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) For fiscal year 2024, GAAP Net Income of $127.7 million was reconciled to an Adjusted EBITDA of $234.7 million. Key adjustments included adding back interest, taxes, depreciation & amortization, as well as $40.6 million in stock-based compensation and $13.1 million in other non-recurring items Reconciliation to Adjusted EBITDA (Year-End) | (in thousands) | Twelve months ended March 31, 2024 | Twelve months ended March 31, 2023 | | :--- | :--- | :--- | | Net income (GAAP) | $127,663 | $61,530 | | EBITDA | $178,180 | $84,108 | | Stock-based compensation | $40,625 | $29,117 | | Other non-cash and non-recurring items | $13,061 | $3,380 | | Adjusted EBITDA (Non-GAAP) | $234,741 | $116,781 | [Reconciliation of SG&A to Adjusted SG&A](index=11&type=section&id=Reconciliation%20of%20SG%26A%20to%20Adjusted%20SG%26A) GAAP Selling, General, and Administrative (SG&A) expenses for fiscal year 2024 were $574.4 million. After excluding $40.6 million in stock-based compensation and $7.4 million in non-recurring items (like ERP implementation and acquisition costs), Adjusted SG&A was $526.4 million Reconciliation to Adjusted SG&A (Year-End) | (in thousands) | Twelve months ended March 31, 2024 | Twelve months ended March 31, 2023 | | :--- | :--- | :--- | | SG&A expenses (GAAP) | $574,418 | $322,253 | | Stock-based compensation | ($40,609) | ($29,005) | | Other non-recurring items | ($7,401) | — | | Adjusted SG&A (Non-GAAP) | $526,408 | $293,248 | [Reconciliation of Net Income to Adjusted Net Income](index=12&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) The company's fiscal year 2024 GAAP Net Income of $127.7 million was adjusted to $183.8 million on a non-GAAP basis. Major adjustments included adding back stock-based compensation ($40.6 million) and amortization of acquired intangibles ($15.0 million), net of tax impacts Reconciliation to Adjusted Net Income (Year-End) | (in thousands) | Twelve months ended March 31, 2024 | Twelve months ended March 31, 2023 | | :--- | :--- | :--- | | Net income (GAAP) | $127,663 | $61,530 | | Stock-based compensation | $40,625 | $29,117 | | Amortization of acquired intangible assets | $15,047 | $8,122 | | Adjusted net income (Non-GAAP) | $183,766 | $91,813 | | Adjusted diluted EPS | $3.18 | $1.66 |

Core Viewpoint - E.l.f. Beauty (ELF) has a strong track record of exceeding earnings estimates and is well-positioned for future earnings surprises, particularly in its upcoming quarterly report [1][4]. Earnings Performance - In the last reported quarter, E.l.f. Beauty achieved earnings of $0.74 per share, surpassing the Zacks Consensus Estimate of $0.59 per share, resulting in a surprise of 25.42% [2]. - In the previous quarter, the company was expected to earn $0.54 per share but delivered $0.82 per share, leading to a surprise of 51.85% [2]. Earnings Estimates and Predictions - Earnings estimates for E.l.f. Beauty have been trending upward, influenced by its history of earnings surprises [4]. - The company currently has an Earnings ESP of +1.32%, indicating that analysts have recently become more optimistic about its earnings prospects [7]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat in the upcoming report scheduled for May 22, 2024 [7]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [5]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [6].

Wall Street expects a year-over-year decline in earnings on higher revenues when e.l.f. Beauty (ELF) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on May 22, 2024, might help the stock move higher if these key numbers are better than expect ...

These companies are raking in profits at astonishing clips.The stock market has taken investors for a wild ride these last few years. When you're investing in stocks for many years, though, even multiple tough market cycles shouldn't deter you from your core investing thesis about quality companies.Even as the S&P 500 has had a pretty fantastic 2024 so far, becoming a part owner of great businesses is what you should focus on as a long-term investor. Here are two top stocks to consider buying now that you c ...

e.l.f. Beauty (ELF) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this cosmetics company have returned -3.8%, compared to the Zacks S&P 500 composite's -0.2% change. During this period, the Zacks Cosmetics industry, which e.l.f. Beauty falls in, has lost 7.3%. The key question now is: What could be the stock's future direction?Although media reports or ...

Investors with an interest in Cosmetics stocks have likely encountered both Helen of Troy (HELE) and e.l.f. Beauty (ELF) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks wit ...

e.l.f. Beauty (ELF) closed the most recent trading day at $176.98, moving -0.01% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.02% for the day. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 0.1%.The the stock of cosmetics company has fallen by 10.53% in the past month, lagging the Consumer Staples sector's loss of 1.14% and the S&P 500's loss of 3.01%.The investment community will be paying close attention to the earnings perf ...

e.l.f. Beauty (ELF) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this cosmetics company have returned -23.8%, compared to the Zacks S&P 500 composite's -4% change. During this period, the Zacks Cosmetics industry, which e.l.f. Beauty falls in, has lost 5.4%. The key question now is: What could be the stock's future direction?While media releases or rum ...