Sally Beauty (SBH) Tops Q4 Earnings Estimates

Core Insights - Sally Beauty reported quarterly earnings of $0.50 per share, exceeding the Zacks Consensus Estimate of $0.48 per share, and up from $0.42 per share a year ago, representing an earnings surprise of 4.17% [1] - The company posted revenues of $935.03 million for the quarter ended September 2024, slightly missing the Zacks Consensus Estimate by 0.07%, but up from $921.36 million year-over-year [2] - The stock has underperformed the market, losing about 5.7% since the beginning of the year compared to the S&P 500's gain of 25.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $942.7 million, and for the current fiscal year, it is $1.74 on revenues of $3.76 billion [7] - The estimate revisions trend for Sally Beauty is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Retail - Miscellaneous industry, to which Sally Beauty belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Sally Beauty's stock performance [5]