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Ulta Beauty, Inc. (ULTA - Free Report) is likely to register growth in the top and the bottom line when it reports first-quarter fiscal 2022 earnings on May 26. The Zacks Consensus Estimate for revenues is pegged at $2,131 million, suggesting a rise of almost 10% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for Ulta Beauty’s quarterly earnings has moved up 0.2% in the last seven days to $4.44 per share, indicating growth of 8.3% from the figure reported in the prior-year quarter. This beauty products retailer has a trailing four-quarter earnings surprise of 67.8%, on average. ULTA delivered an earnings surprise of 17.4% in the last reported quarter.

Ulta Beauty Inc. Price, Consensus, and EPS Surprise

Ulta Beauty Inc. price-consensus-eps-surprise-chart | Ulta Beauty Inc. Quote

Things To Note

Ulta Beauty has been benefiting from focus on six strategic priorities.

These include solidifying the omni-channel business and exploring the potential of both physical and digital facets, undertaking various tools to enhance the experience of guests, offering customers an exclusive range of beauty products through innovation, deepening customer engagement by boosting rewards and loyalty programs, optimizing the cost structure, and boosting organizational talent.

The company is enriching its omni-channel experience through launches like Beauty to Go, options like same-day delivery, and unique salon services across stores, among others. Apart from this, the company’s skincare category has been gaining traction, thanks to consumers’ rising interest toward self-care and its focus on newness and innovation. Persistence of these upsides are likely to have worked well in the quarter to be reported.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Ulta Beauty this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Ulta Beauty currently carries a Zacks Rank #3 and has an Earnings ESP of +5.16%.

Stocks With a Favorable Combination

Here are some more companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this season:

Designer Brands (DBI - Free Report) currently has an Earnings ESP of +4.35% and a Zacks Rank of 2. The company is likely to register top- and bottom-line growth when it reports first-quarter fiscal 2022 earnings.

The consensus mark for Designer Brands’ quarterly revenues is pegged at $806.7 million, which suggests 14.7% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus mark for quarterly earnings has moved up by a penny in the last 30 days to 23 cents per share. The consensus estimate for DBI suggests growth of 91.7% from the year-ago quarter’s levels. Designer Brands’ has a trailing four-quarter earnings surprise of 112.8%, on average.

Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +7.07% and a Zacks Rank of 3. CASY is anticipated to register a top-line increase from the last fiscal year’s quarterly reading when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for CASY’s revenues is pegged at $3,443 million, indicating a rise of 44.7% from the figure reported in the prior fiscal year’s quarter.

The Zacks Consensus Estimate for Casey's General Stores’ quarterly earnings is pegged at $1.49 per share, suggesting an improvement of 33% from the last fiscal year’s quarterly reported number. CASY has a trailing four-quarter earnings surprise of 21.6%, on average.

American Eagle Outfitters, Inc. (AEO - Free Report) currently has an Earnings ESP of +3.55% and a Zacks Rank of 3. AEO is expected to register robust top-line growth when it reports first-quarter fiscal 2022 results. The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $1.14 billion, which indicates growth of 9.9% from the year-ago reported figure.  

However, the Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at 24 cents per share, suggesting a 50% decline from the year-ago quarter's reported number. The Zacks Consensus Estimate for the to-be-reported quarter's earnings has moved down by a penny in the past seven days. American Eagle has a trailing four-quarter earnings surprise of 10.6%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.