e.l.f. Beauty Inc. (NYSE:ELF) is a well-known player in the cosmetics industry, recognized for its affordable beauty products. The company has successfully positioned itself in the market by offering budget-friendly alternatives to high-end and mass-market makeup brands. Despite operating in a non-essential segment of the consumer staples sector, e.l.f. Beauty has shown resilience, consistently growing its quarterly sales for 27 consecutive quarters.

On February 4, 2026, e.l.f. Beauty reported earnings per share (EPS) of $0.68, which was below the anticipated $0.72. The company's revenue was approximately $344 million, falling short of the estimated $462 million. This earnings miss comes amid a competitive landscape where e.l.f. Beauty competes with industry giants like Estee Lauder and Procter & Gamble. Estee Lauder, for instance, has seen its shares rise by nearly 70% over the past year, while e.l.f. Beauty's shares have declined by 4.4%.

Despite the earnings miss, e.l.f. Beauty's financial metrics indicate a strong market position. The company has a price-to-earnings (P/E) ratio of about 60.49, suggesting that investors are willing to pay a premium for its earnings. The price-to-sales ratio is approximately 3.65, and the enterprise value to sales ratio is around 4.17, reflecting the market's valuation of the company relative to its sales. These figures highlight the confidence investors have in e.l.f. Beauty's growth potential.

e.l.f. Beauty's financial health is further supported by its debt-to-equity ratio of approximately 0.81, indicating a moderate level of debt financing. The current ratio stands at about 2.70, showcasing the company's strong ability to cover its short-term liabilities with its short-term assets. These metrics suggest that e.l.f. Beauty is well-positioned to navigate financial challenges and continue its growth trajectory.

As highlighted by Zacks Investment Research, analysts had anticipated a decline in e.l.f. Beauty's earnings for the quarter ending December 2025, despite an expected increase in revenues. The company's future earnings outlook and stock price movements will largely depend on management's discussion of business conditions during the earnings call. Investors will be keen to see if e.l.f. Beauty can surpass expectations in the coming quarters.