Why e.l.f Beauty Stock Popped but Then Fell This Week
It has been a wild week for e.l.f. Beauty (NYSE: ELF) shareholders. After rising earlier in the week along with the broad market, the stock dropped by 15% after the company posted second-quarter earnings. An affordable beauty brand, e.l.f. Beauty is posting strong growth and expanding rapidly internationally. However, its results were below Wall Street's expectations for the high-priced stock.
Here's why e.l.f. Beauty stock went on a roller-coaster ride this week.
In the second quarter of 2024, e.l.f. Beauty put up more impressive growth numbers. Revenue grew 50% year over year to $324.5 million, with international sales up a whopping 91% as the brand expands outside of the United States. E.l.f. is gaining market share rapidly against the incumbent competitors and legacy beauty brands. The company is also quite profitable, generating $47.5 million in net income just in the second quarter. In the last five years, e.l.f. Beauty's revenue has grown at close to 300%.
Source Fool.com
