Regis Corporation Reports Mixed Q3 Results Despite Beating EPS Estimate

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Regis Corporation ($NYSE:RGS), a leading hair salon operator in the U.S. and Canada, recently reported mixed results for its third quarter. Despite beating its earnings per share (EPS) estimate by $0.02, the company fell short of its revenue projection by $0.17 million. It provides services such as haircuts, hair coloring, styling, and various hair treatments.

The company also develops, manufactures, and distributes professional hair care products to its salons and other retail outlets. Regis owns and operates several popular brands such as Supercuts, Cost Cutters, Magicuts, SmartStyle, Pro-Cuts, and First Choice Haircutters.

Stock Price

Despite beating the earnings per share (EPS) estimates, the stock opened at $1.2 and closed at $1.1, a decrease of 4.2% from the previous day’s closing price. However, analysts had expected slightly higher profits and had hoped that the company could build on its previous quarter’s performance. The company attributed its mixed performance to higher operating expenses and a stronger U.S. dollar, which impacted their results. However, despite the lower-than-expected results, REGIS CORPORATION remains optimistic about future growth and believes that their strategic investments will pay off in the long run. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Regis Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Regis Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Regis Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for Regis Corporation are shown below. More…

Analysis

At GoodWhale, we’ve taken a look at REGIS CORPORATION‘s fundamentals and performed an in-depth analysis of their financials and business operations. Our Risk Rating system has placed REGIS CORPORATION in the medium risk category, which means they are largely a stable investment with minimal risk. Despite this, GoodWhale has identified 2 risk warnings in their income sheet and balance sheet. These could indicate potential issues in the future and should be monitored closely. If you’re interested in learning more about these warnings, register with us for free and check out our analysis. More…

Peers

The competition between Regis Corp and its competitors, Traeger Inc, Alsea SAB de CV, and Papa John’s International Inc, is fierce. All of these companies are vying for a share of their respective markets, with each trying to outdo the other in terms of product quality, prices, and customer service. In this highly competitive environment, each of these companies strives to find new and innovative ways to stand out from the competition and appeal to customers.

– Traeger Inc ($NYSE:COOK)

Traeger Inc is a global leader in outdoor living products. It designs, manufactures, markets, and distributes wood pellet grills, accessories, sauces, and rubs. As of 2023, the company has a market capitalization of 359.34M, which represents the total value of the company’s equity in the market. Traeger’s Return on Equity (ROE) is -63.21%, indicating that the company is not generating a positive return on its shareholder’s funds. This could be due to its operating losses or due to the company’s growth in the market. Despite this, Traeger Inc remains committed to providing premium products to its customers and continues to be a major player in the outdoor living products industry.

– Alsea SAB de CV ($OTCPK:ALSSF)

Alsea SAB de CV is a Mexican holding company that is engaged in the restaurant, retail and other services businesses in Latin America. It has a market cap of 2.24B as of 2023, and its Return on Equity (ROE) stands at 52.23%. This reflects the company’s strong financial performance and shows that it is able to generate a high return on the capital employed. Alsea operates through four segments namely: Domestic Retail, International Retail, Restaurants and Others. The Domestic Retail segment includes the operations of the retail brands such as Office Depot, Starbucks, Blockbuster, Liverpool and Sanborns. The International Retail segment includes the operations of the retail brands such as Zara, Pull & Bear, and Massimo Dutti. Furthermore, the Restaurants segment includes the operations of the restaurant brands such as Domino’s Pizza and Vips Restaurants and Others segment includes the operations of the services businesses such as car repair and maintenance services, travel agency services and others.

– Papa John’s International Inc ($NASDAQ:PZZA)

Papa John’s International Inc is a global pizza restaurant franchise that currently operates over 5,500 stores. As of 2023, it has a market cap of 2.61B and a Return on Equity (ROE) of -24.31%. The company’s market cap is a reflection of its market value and how much investors are willing to pay for its stock. The negative ROE suggests that it is not efficiently utilizing its shareholders’ equity, but the company is focusing on improving its profitability. Recent initiatives include expanding its online presence, transforming its menu and delivery models, and improving its operations.

Summary

Regis Corporation is a leading beauty company in the U.S. and Canada, with a portfolio of well-known hair care brands. On the latest earnings report, the company reported a GAAP EPS of -$0.05, which beat estimates by $0.02.

However, total revenue of $55.77M missed estimates by $0.17M. Following the earnings announcement, the stock price moved down, indicating a negative reaction from investors. Despite the stock price decline, analysts remain optimistic that the company may be able to bring its financials back on track in the near future. Investors should consider the current market conditions and analyze Regis’ financials before making any decisions.