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SBHBearishEarningsnews
High materiality8/10

Sally Beauty Beats Q2 Earnings but Issues Below-Estimate Q3 Guidance

May 12, 2026, 2:21 PM EDT1 sourcesAI-analyzed
Why it may matterVerify against the original reporting

Earnings beat optimism overshadowed by negative guidance and price target downgrades suggests short-term bearish sentiment.

AI summary

What happened, with direct paths to the underlying reporting

Sally Beauty Holdings reported stronger-than-expected Q2 earnings but issued lower-than-expected guidance for Q3, impacting sentiment. Analysts have reacted by adjusting price targets, indicating possible pressure on the stock in the near term.

  • Sally Beauty's Q2 earnings beat expectations at 44 cents per share.
  • Quarterly sales also exceeded estimates, reaching $903.4 million.
  • Q3 guidance falls below consensus, with EPS estimate of 52-56 cents.
  • Morgan Stanley downgraded SBH’s price target from $16 to $13.
  • TD Cowen maintained a Buy rating but lowered the target to $17.

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