Sally Beauty Holdings, Inc. SBH is likely to register growth in top and bottom lines when it reports fourth-quarter fiscal 2024 earnings on Nov. 14. The Zacks Consensus Estimate for revenues is pegged at $935.7 million, which indicates a 1.6% increase from the year-ago quarter. The consensus mark for quarterly earnings has remained unchanged in the past 30 days at 48 cents per share, indicating an increase of 14.3% from the year-ago quarter’s reported figure.

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The Zacks Consensus Estimate for Sally Beauty’s fiscal 2024 top line is pegged at $3.7 billion, indicating a dip of 0.3% from the prior-year reported figure. The consensus mark for the fiscal 2024 bottom line is pegged at $1.66 per share, suggesting a decrease of 9.3% from the prior-year reported figure. The international specialty retailer and distributor of professional beauty supplies has a trailing four-quarter earnings surprise of 0.5%, on average.

Sally Beauty Holdings, Inc. Price and EPS Surprise

Sally Beauty Holdings, Inc. price-eps-surprise | Sally Beauty Holdings, Inc. Quote

Things to Consider About SBH’s Upcoming Results

Sally Beauty is focusing on three key strategic initiatives to drive growth and enhance operational efficiency. These initiatives include strengthening customer-centric efforts, expanding high-margin-owned brands and fostering innovation while optimizing overall capabilities.

To enhance customer engagement, Sally Beauty has been ramping up its marketing efforts and offering differentiated products. The company is implementing strategic programs like the Happy Beauty Co. initiative, which is gaining traction. In addition, Sally Beauty’s focus on market expansion, innovations and digital enhancements is garnering a positive consumer response. The continuation of these trends is likely to have positively impacted the company’s performance in the to-be-reported quarter.

For fiscal 2024, management expects almost flat net sales and comparable sales compared with the year-ago period. The consensus mark for fiscal 2024 comparable sales growth is pegged at nearly 0.2%. Gross margins are projected to be in the range of 50.5% to 51%, with an adjusted operating margin forecast at approximately 8.5% for the year.

Weak consumer sentiment remains a challenge for Sally Beauty, as customers are increasingly frugal and focused on necessity-driven purchases. This cautious approach is influenced by ongoing economic uncertainty and inflationary pressures, making consumers more price sensitive and more reliant on promotions to manage their budgets.

In addition, Sally Beauty has been facing escalated selling, general and administrative (SG&A) expenses, thanks to higher advertising and labor costs, among other factors. The continued impact of such downsides is expected to have put pressure on SBH’s results for the fiscal fourth quarter.

Earnings Whispers for Sally Beauty

Our proven model does not predict an earnings beat for Sally Beauty this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

SBH carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the correct combination to beat on earnings this time around.

Best Buy BBY presently has an Earnings ESP of +0.06% and a Zacks Rank of 2 at present. The company is slated to register a top-line decline when it reports fiscal third-quarter results. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.63 billion, which indicates a decline of 1.3% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Best Buy’s quarterly earnings has remained unchanged over the past 30 days at $1.30 per share. The figure indicates growth of 0.8% from the year-ago quarter’s number. BBY delivered an average earnings surprise of 11.4% in the trailing four quarters.

Target TGT has an Earnings ESP of +0.73% and a Zacks Rank #2 at present. TGT is likely to register growth in top and bottom lines when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $26 billion, indicating 2.2% growth from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Target’s fiscal third-quarter earnings is pegged at $2.28 per share, indicating 8.6% growth from the year-ago quarter. The consensus mark has remained unchanged in the past 30 days.

Dollar Tree DLTR currently has an Earnings ESP of +2.80% and a Zacks Rank of 3. The company is likely to register growth in top and bottom lines when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $7.5 billion, indicating 1.9% growth from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Dollar Tree’s earnings is pegged at $1.07 per share, indicating 10.3% growth from the year-ago quarter. The consensus mark has moved up a penny in the last 30 days.

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