Earnings Update: Here's Why Analysts Just Lifted Their Sally Beauty Holdings, Inc. (NYSE:SBH) Price Target To US$16.25

The full-year results for Sally Beauty Holdings, Inc. (NYSE:SBH) were released last week, making it a good time to revisit its performance. Sally Beauty Holdings reported US$3.7b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.89 beat expectations, being 2.7% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, Sally Beauty Holdings' five analysts currently expect revenues in 2026 to be US$3.74b, approximately in line with the last 12 months. Statutory earnings per share are predicted to increase 2.3% to US$2.06. In the lead-up to this report, the analysts had been modelling revenues of US$3.73b and earnings per share (EPS) of US$2.02 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Sally Beauty Holdings

The consensus price target rose 7.4% to US$16.25despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Sally Beauty Holdings' earnings by assigning a price premium. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Sally Beauty Holdings analyst has a price target of US$19.00 per share, while the most pessimistic values it at US$13.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Sally Beauty Holdings' growth to accelerate, with the forecast 1.1% annualised growth to the end of 2026 ranking favourably alongside historical growth of 0.1% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.0% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Sally Beauty Holdings is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Sally Beauty Holdings going out to 2028, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Sally Beauty Holdings that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.