e.l.f Beauty Shares Plunge. Should Investors Buy the Stock on the Dip or Stay Away?

• e.l.f. Beauty shares plunged aft the company's guidance came up good abbreviated of expectations.

• The institution has been dealing with tariff pressure.

• However, its semipermanent accidental looks to stay intact.

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It has been a roller-coaster thrust for shareholders successful e.l.f. Beauty (NYSE: ELF) implicit the past year. After a steep driblet aboriginal this twelvemonth and a beardown rally pursuing the company's May announcement of its program to get Rhode, the banal was adjacent to adjacent for the twelvemonth heading into its fiscal 2026 second-quarter study this week. But shares plummeted aft it reported its results connected Wednesday, and the banal is present down much than 40% connected the year.

Is the cosmetic company's latest dip a buying accidental oregon should investors enactment away?

When e.l.f. Beauty reported its fiscal 2026 Q1 results, it did not supply full-year guidance owed to uncertainty implicit however President Donald Trump's tariffs would impact the concern and the broader economy, and determination surely seemed to beryllium a disconnect erstwhile the institution issued guidance this clip around. It is besides worthy noting that, historically, e.l.f. absorption has tended to beryllium precise blimpish with its guidance.

For the fiscal twelvemonth (which volition extremity successful March 2026), the institution expects gross to turn by 18% to 20% to a scope of $1.55 cardinal to $1.57 billion, with adjusted EPS of betwixt $2.80 and $2.85, down from $3.39 a twelvemonth ago. Management projected that adjusted net earlier interest, taxes, depreciation, and amortization (EBITDA) would emergence somewhat from $297 cardinal successful fiscal 2025 to a scope of $302 cardinal to $306 million. Those numbers were each good beneath analysts' statement expectations.

Rhode is expected to lend $200 cardinal successful gross this fiscal year, and person a $300 cardinal yearly gross tally rate, which would supply the institution with astir 40% growth. Organic income are projected to emergence by betwixt 3% and 4%. Shipments this twelvemonth are expected to beryllium little than depletion aft the institution gained support abstraction astatine Target past twelvemonth and began selling its wares astatine Dollar General locations.

In its fiscal 2nd quarter, which ended Sept. 30, its income roseate 14% twelvemonth implicit twelvemonth to $344 million, which missed the analysts' statement fig of $366 million. Rhode added $52 cardinal to e.l.f.'s sales, but integrated income were down astir 3%. The institution said it temporarily held backmost shipments to immoderate retailers that had not been speedy to instrumentality its $1 terms summation successful August, which impacted gross successful the quarter. The institution said that contented had been resolved, and that it is shipping usually again.