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The volatile post-earnings trading continued on e.l.f. Beauty (NYSE:ELF) as shared peed off 8.7% in late morning trading after gaining more than 18% in the prior seven sessions. Over the last six weeks, ELF is down about 12.5% after several streaks of up and down days.
Piper Sandler thinks the downward move by e.l.f. Beauty (ELF) gives investors another entry point. Analyst Korinne Wolfmeyer believes a slight deceleration in credit card data for ELF in the most recent four weeks is driving the outsized share weakness on Monday, but does not view the development as a concern and still believe higher-growth digital, international, and Naturium could more than offset and lead to a FQ2 beat for ELF.
Raymond James also recently pointed to a buying opportunity, with e.l.f. Beauty (ELF) still down notably from its peak in June. After meeting with management, analyst Olivia Tong said the firm had confidence in ELF’s ability to grow sales and profits, well ahead of peers and the company’s own near-term outlook.
Alongside the company’s Q2 earnings report, e.l.f. Beauty (ELF) raised full-year sales guidance to a range of approximately 25% to 27%, up from 20% to 22% previously. Adjusted EBITDA is anticipated to land in a range of $297 million to $301 million, up from $285 million to $289 million previously.
Shares of e.l.f. Beauty (ELF) were down 8.4% at 11:40 a.m. The cosmetics retail stock is still 29% below the 52-week high. Short interest on ELF stands at 4.2% of the total float.
