Ulta Beauty, Inc. (NASDAQ:ULTA) Earnings Preview and Analyst Insights

• Ulta Beauty, Inc. (NASDAQ:ULTA) is set to release its quarterly earnings with an expected EPS of $5.76 and revenue of approximately $2.79 billion.
• JPMorgan analyst Christopher Horvers has reiterated an Overweight rating on Ulta, adjusting the price target from $475 to $477.
• Ulta's financial health is highlighted by an earnings yield of 6.16% and a debt-to-equity ratio of 0.77, indicating a balanced approach to financing.

Ulta Beauty, Inc. (NASDAQ:ULTA) is a leading beauty retailer in the United States, offering a wide range of cosmetics, skincare, and haircare products. The company is known for its unique blend of mass and prestige offerings, which sets it apart from competitors like Sephora and Sally Beauty. Ulta's strong market position is reflected in its financial metrics and growth potential.

As Ulta prepares to release its quarterly earnings on May 29, 2025, Wall Street analysts project an earnings per share (EPS) of $5.76 and revenue of approximately $2.79 billion. This announcement is anticipated to provide insights into the company's performance and could influence its stock price, as highlighted by Business Wire. The company's current price-to-earnings (P/E) ratio is 16.23, indicating how the market values its earnings.

JPMorgan analyst Christopher Horvers has reiterated an Overweight rating on Ulta, slightly increasing the price target from $475 to $477. This optimism is supported by Ulta's recent fourth-quarter earnings update, where the company reported nearly flat comparable sales trends that are beginning to improve. This improvement is attributed to the momentum from its semi-annual event and a more stable consumer and beauty market.

Horvers anticipates that the beauty category's growth will normalize to its historical range of 3% to 4%, which could allow Ulta to gain market share. This growth is expected to lead to better margin conversion, earnings growth, and potential multiple expansion. Ulta's price-to-sales ratio of 1.68 and enterprise value to sales ratio of 1.79 reflect the company's revenue valuation relative to its market capitalization and total value.

Ulta's financial health is further supported by its earnings yield of 6.16% and a debt-to-equity ratio of 0.77, indicating a balanced approach to financing its assets. The company's current ratio of 1.70 suggests a strong ability to cover short-term liabilities with short-term assets. CEO Kecia Steelman's positive outlook during the April 3 RRU conference reinforces confidence in Ulta's future performance.