NEW YORK (TheStreet) -- ULTA Salon, Cosmetics & Fragrance (ULTA) - Get Report shares are soaring 7.19% to $229.05 in after-hours trading Thursday immediately following the specialty retailer's better-than-expected 2016 first quarter results.
Earnings of $1.45 a share handily beat Wall Street's estimates of $1.29 a share and was higher than $1.04 a share it earned the year prior.
Revenue jumped 23.7% to $1.07 billion, topping forecasts of $1.03 billion.
"We are off to a phenomenal start to the year, delivering excellent top and bottom line growth in the first quarter," CEO Mary Dillon stated.
In addition, comparable sales grew 15.2%, compared to an increase of 11.4% a year ago. Specifically, sales in its e-commerce segment saw the highest growth, rising 38.8% to $61 million.
Overall, business has been boosted by healthy consumer demand in the beauty category and effective collaboration across the enterprise to ensure strong execution of the company's growth strategies.
Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of A-.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
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: ULTA