Why Ulta Salon (ULTA) Is Spiking After the Bell

NEW YORK (TheStreet) -- Ulta Salon, Cosmetics & Fragrances (ULTA) is spiking in extended trading following a better-than-expected fourth quarter.

After the bell, shares had added 6.7% to $95.50.

The beauty supplies retailer recorded revenue of $868.08 million, 14.4% higher than a year earlier. Analysts surveyed by Thomson Reuters had anticipated $855.64 million in sales.

Net income of $1.09 a share was 2 cents higher than analysts' expectations.

"We delivered earnings growth consistent with our expectations and made significant progress with our key growth strategies," said CEO Mary Dillon in a statement.

Comparable sales increased 9.2% compared to an 8.6% gain in the year-ago quarter.

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TheStreet Ratings team rates ULTA SALON COSMETCS & FRAG as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate ULTA SALON COSMETCS & FRAG (ULTA) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, expanding profit margins, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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