E.l.f. Beauty's Guidance Sinks Stock Despite Blowout Earnings

Core Insights - E.l.f. Beauty's fiscal year 2025 guidance fell short of analyst expectations, leading to a significant drop in shares despite strong quarterly performance [1][3] - The company reported adjusted earnings per share (EPS) of $1.10, exceeding analyst forecasts by 25 cents, and revenue of $324.5 million, a 50% increase year-over-year [2][3] - E.l.f. Beauty's revenue growth was driven by strong performance in retail and e-commerce channels, which grew by 43% and 105% respectively [3] Financial Performance - Full-year adjusted EPS guidance is projected between $3.36 and $3.41, with revenue expected to be in the range of $1.28 billion to $1.30 billion, which, while higher than previous guidance, did not meet analyst expectations [2] - The company has achieved 22 consecutive quarters of net sales growth and market share gains, positioning it among high-growth consumer companies [3] Market Reaction - Following the weaker-than-expected outlook, E.l.f. Beauty shares fell more than 14% on Friday, although the stock remains nearly 12% higher for the year 2024 [3]