Ulta Beauty's (ULTA) full-year guidance missed Wall Street's estimates, but showed potential for positive earnings revisions in the coming quarters, UBS said in a Friday client note.

The beauty retailer late Thursday said that it expects earnings per share between $22.50 and $22.90 in fiscal 2025, below the consensus that UBS put at $23.51. Net sales are projected between $11.5 billion and $11.6 billion, compared with the consensus on FactSet indicating $11.68 billion as of the end of February.

"The operating environment continues to be dynamic, and as we navigate ongoing consumer uncertainty, we believe it is prudent to take a cautious approach to our guidance for fiscal 2025," Chief Financial Officer Paula Oyibo said during a Thursday earnings call, according to a FactSet transcript. "Additionally, as we shared at our Investor Meeting in October, we are planning fiscal 2025 to be a transition year and our view has not changed."

Ulta expects selling, general and administrative expenses to increase 10% for the year. Bulls view that as conservative, leaving "potential upside risk to EPS estimates," UBS analysts led by Michael Lasser wrote in the note.

The stock was soaring 13% in Friday trade, trimming its year-to-date loss to 18%.

"In the near-term, the (company) has continued to manage (2025) EPS expectations well," Lasser said. "We think Ulta's guidance leaves room for positive estimate revisions over the next few quarters."

Ulta forecasts promotional environment to remain "rational" this year and does not see a significant impact from tariffs compared with peers, UBS said. These factors can support the retailer's profitability.

However, Ulta's guidance still indicates some ongoing pressure for its beauty category this year, UBS said.

For the fiscal fourth quarter, Ulta's EPS rose to $8.46 from $8.08 last year, compared with the FactSet-polled estimate of $7.12. Sales fell 1.9% to $3.49 billion, above the $3.47 billion estimate modeled by analysts.