Friday, June 8, 2012

Ulta Beauty Shareholders Dodge A Bullet (For Now)

Remaining an investor in Ulta Beauty (ULTA) has to be akin to playing Russian roulette. Prior to earnings the company was trading at nearly 28x next year's estimates of $3.14.

No indications exist that Ulta will have a massive blowup similar to fellow retailers Fossil (FOSL) and Body Central (BODY) or any of the numerous stocks that plunged 20, 30, or even 40% during earnings. Of course, neither of those stocks showed signs of weak results ahead of plunges either. Considering Ulta trades at a lofty multiple, any whiff of disappointing numbers could result in a significant drop.

Good Enough

After the close on Tuesday, Ulta reported Q113 numbers that slightly exceeded estimates. Net sales hit $474.1M, which only slightly exceeded the $473M estimates. Earnings also beat by $.01.

Read the full article at Seeking Alpha.


Disclaimer. No positions mentioned. Please review the disclaimer page for more details. 





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