Will Sally Beauty (SBH) Stock Fall on Earnings Miss?

Sally Beauty (SBH) reported disappointing fiscal 2015 fourth quarter financial results and mixed results for the full year.
By Amanda Gomez ,

NEW YORK (TheStreet) -- Sally Beauty Holdings (SBH) - Get Report reported lower than expected fiscal 2015 fourth quarter financial results on Thursday before the market open.

The beauty supplies retailer posted earnings of 38 cents per share for the quarter ended September 30, missing estimates by 1 cent.

Revenue increased 2.1% year-over-year to $964.23 million for the quarter, falling short of estimates of $964.38 million because of a negative impact from foreign exchange rates.

"We finished the year with solid consolidated same store sales growth of 3.5% in the fourth quarter," CEO Chris Brickman said in a statement.

Additionally, Sally Beauty reported earnings of $1.53 per share for fiscal 2015, also missing estimates by 1 cent, and revenue of $3.83 billion that was in in line with estimates.

Same store sales rose 2.9% for the full year, driven by a 5.7% increase in the Beauty Systems Group segment and 1.7% growth at Sally Beauty Supply locations.

"In the back half of fiscal 2015, we implemented sales and profit improvement initiatives that we now expect will largely offset anticipated cost headwinds and allow for steady profit growth for Sally Beauty Holdings in fiscal 2016," Brickman added.

Sally Beauty stock is gaining 7.68% to $23.83 in late morning trading.

Separately, TheStreet Ratings team rates SALLY BEAUTY HOLDINGS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate SALLY BEAUTY HOLDINGS INC (SBH) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.

You can view the full analysis from the report here: SBH

SBH

data by

YCharts

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

Loading ...