Ulta Shares Soar After Boosting Outlook

Shares of Ulta Salon (NASDAQ:ULTA) soared more than 13 percent in after-hours trading Thursday, after the beauty products retailer reported better than expected second-quarter results and raised its outlook for the year.

The company said an increase in online sales and new products helped boost its results.

Ulta earned $60.8 million, or 94 cents, beating Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 82 cents per share.

The company posted revenue of $734.2 million in the period, also exceeding Street forecasts. Analysts expected $711.4 million, according to Zacks.

Sales in stores open at least 14 months and online sales combined rose 9.6 percent during the quarter, driven by growth in both the number of transactions and the average ticket.

For the current quarter ending in October, Ulta said it expects earnings between 79 cents and 84 cents per share and revenue in the range of $724 million to $736 million. Analysts surveyed by Zacks had expected earnings of 82 cents per share and revenue of $715.2 million.

For the full year, the company said it now expects earnings per share and revenue to each grow 20 percent from the previous year. In June, the company said it expected earnings per share and revenue to grow in the mid-teens percentage range from the previous year.

The company also said its board authorized a $300 million stock repurchase plan.

Ulta, based in Bolingbrook, Illinois, operates 715 stores around the country that sell shampoos, makeup, perfumes and other products.

Shares of Ulta Salon, Cosmetics & Fragrance Inc. rose 13.1 percent to $110.25 after the market closed Thursday.