Ulta Stock Falls in After-Hours Trading Despite Q2 Beat - TheStreet

NEW YORK (TheStreet) -- Shares of Ulta Salon, Cosmetics & Fragrance (ULTA) - Get Report were falling in after-hours trading on Thursday despite posting better-than-expected results for the 2016 second quarter. 

After Thursday's market close, the Bolingbrook, IL-based beauty retailer reported earnings of $1.43 per diluted share, topping analysts' estimates of $1.39 per share. 

Revenue climbed 21.9% year-over-year to $1.07 billion and beat analysts' projections of $1.06 billion.

Same-store sales grew 14.4%, while analysts were looking for an increase of about 13%. 

E-commerce sales rose 55% from the year-ago period, while salon sales increased 14%. 

For the 2016 third quarter, Ulta expects to report earnings between $1.25 and $1.30 per share on revenue between $1.07 billion and $1.09 billion. Analysts surveyed by Thomson Reuters are looking for adjusted earnings of $1.29 per share on revenue of $1.08 billion. 

Shares have surged nearly 47% so far this year. 

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A-.

Ulta's strengths such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

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

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. 

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