Cosmetics company e.l.f. Beauty (NYSE:ELF) will be reporting earnings tomorrow after the bell. Here’s what to expect.

e.l.f. Beauty beat analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $301.1 million, up 39.7% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Is e.l.f. Beauty a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting e.l.f. Beauty’s revenue to grow 21.7% year on year to $329.7 million, slowing from the 84.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.76 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. e.l.f. Beauty has missed Wall Street’s revenue estimates three times over the last two years.

Looking at e.l.f. Beauty’s peers in the consumer staples segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Estée Lauder’s revenues decreased 6.4% year on year, beating analysts’ expectations by 0.7%, and Clorox reported a revenue decline of 15.3%, topping estimates by 2.8%. Clorox traded down 7.2% following the results.

Read our full analysis of Estée Lauder’s results here and Clorox’s results here.

Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the consumer staples stocks have shown solid performance, the group has generally underpeformed, with share prices down 3.8% on average over the last month. e.l.f. Beauty is down 30.3% during the same time and is heading into earnings with an average analyst price target of $153.58 (compared to the current share price of $89).

Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.