Shares of Ulta Beauty (NASDAQ:ULTA) soared in after-hours trading at the time of writing after the company reported earnings for its third quarter of Fiscal Year 2023. Earnings per share came in at $5.07, which beat analysts’ consensus estimate of $4.96 per share.
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Sales increased by 8.3% year-over-year, with revenue hitting $2.49 billion. This beat analysts’ expectations by $20 million. The company said the rise was driven by increased comparable sales of 4.5%, strong new store performance, and growth in other revenue.
Looking forward, management now expects revenue and adjusted earnings per share for Fiscal Year 2023 to be in the ranges of $11.1 billion to $11.15 billion and $25.20 to $25.60, respectively.
Is ULTA a Good Stock to Invest In?
Turning to Wall Street, analysts have a Strong Buy consensus rating on ULTA stock based on 13 Buys, two Holds, and one Sell assigned in the past three months, as indicated by the graphic below. With a 10% decline in its share prices this year, the average ULTA price target of $516.40 per share implies 21.75% upside potential.
