Shares of E.l.f. Beauty surged roughly 15% Wednesday following a significant earnings beat and an upward revision of its fiscal year guidance. The company reported earnings per share of $1.24, far exceeding the expected 72 cents, and revenue of $490 million, outpacing the anticipated $460 million. According to CNBC Business, net sales soared 38% to $489.5 million from $355 million during the same period last year, driven by growth across global markets and e-commerce. E.l.f. attributed part of this success to its recent acquisition of Hailey Bieber's skincare company, Rhode, which added $128 million to the third-quarter sales growth. The company now projects Rhode will contribute up to $265 million in net sales this year, an increase of $65 million from its previous guidance.

CEO Tarang Amin expressed confidence in the company's trajectory, highlighting a record-breaking launch of Rhode in Sephora in the U.K. and market share gains for the e.l.f. Cosmetics brand. He stated, "Our Q3 results... are a continuation of the consistent, category-leading growth we've delivered over the past 28 quarters." Moreover, E.l.f. raised its full-year revenue outlook by $42 million to $50 million.

This robust performance underscores E.l.f.'s ability to leverage innovative marketing and strong brand presence. The company’s strategic moves are not just driving immediate sales but also positioning it for sustained growth in the competitive beauty market. With the beauty sector increasingly shifting towards e-commerce and celebrity collaborations, E.l.f.'s investments seem to be paying off handsomely.