Sally Beauty (SBH) Stock Retreats After Q1 Results
NEW YORK (TheStreet) -- Sally Beauty (SBH) - Get Report stock is tumbling 3.6% to $30.82 on Thursday after the company earlier this morning posted second quarter results for fiscal 2016. Profit was in line with estimates while revenue beat.
Earnings for the latest period came in at 41 cents a share, matching Wall Street's expectations. A year ago, it earned 39 cents a share.
Revenue increased 4.5% to $980.1 million, above what analysts were looking for, which was $965 million.
Same-store sales grew 4% in the recent quarter, but the company endured modest sales headwinds, such as the transition to a solution-based offering in its second-largest category in all 3,000 Sally stores.
Based in Denton, TX, Sally Beauty operates as a specialty retailer and distributor of professional beauty supplies primarily in North America, South America, and Europe.
Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C.
The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and feeble growth in the company's earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
You can view the full analysis from the report here: SBH
