E.l.f. Beauty, the cosmetics company known for its viral TikTok marketing and affordable pricing, has once again surpassed Wall Street's expectations with its impressive sales growth. The company reported a 76% year-over-year increase in sales, prompting it to raise its full-year outlook for the second quarter in a row.

The company's net income for the three-month period ending September 30 was $33.3 million, or 58 cents per share, compared to $11.7 million, or 21 cents per share, during the same period last year. Adjusted earnings per share came in at 82 cents, beating the estimated 53 cents. E.l.f. Beauty's revenue also exceeded expectations, totaling $215.5 million compared to the anticipated $197.1 million.

These impressive financial results have sent E.l.f. Beauty's shares soaring, with a 9% increase during extended trading on Wednesday.

E.l.f. Beauty attributes its success to multiple factors. CEO Tarang Amin credited the company's ability to offer prestige-quality products at affordable prices, its innovative product lineup inspired by prestige brands and customer feedback, and the overall appeal of its products to consumers.

During the fiscal second quarter, E.l.f. Beauty significantly increased its marketing spend, contributing to the company's robust sales growth. Digital sales were up by approximately 75% during this period, highlighting the company's effective online presence. International sales also saw an impressive year-over-year increase of 157%.

Furthermore, the company's skincare line, favored by younger consumers, experienced a remarkable growth rate of over 100%.

Buoyed by these exceptional results, E.l.f. Beauty has raised its full-year outlook yet again. The company now anticipates sales growth between 55% and 57% for the year, expecting net sales to reach an estimated range of $896 million to $906 million. This guidance exceeds analysts' projected full-year sales of $852 million, representing a growth rate of 47.1%.

Additionally, E.l.f. Beauty has upwardly revised its adjusted profit guidance. The company now predicts full-year adjusted earnings to fall between $144 million and $146 million, compared to the previous range of $125 million to $127 million. Adjusted earnings per share are expected to be between $2.47 and $2.50, slightly above the consensus estimate of $2.46.

E.l.f. Beauty's strong financial performance has been further reinforced by improved margins, which came in at 71% for the quarter. This increase of 5.7 percentage points from the previous year is attributed to lower inventory adjustments, cost savings, improved transportation costs, and favorable foreign exchange rates.

Despite E.l.f. Beauty's presence in various retail stores and mass retailers like Walmart and Target, the company manages to maintain high margins due to its high volumes and its strategy of selling products at full retail prices. E.l.f. Beauty has doubled its market share over the past three years, and CEO Tarang Amin believes they can double it yet again in the coming years.

The company's strong financial performance and optimistic outlook signal a bright future for E.l.f. Beauty in the highly competitive cosmetics industry, driven by its successful marketing strategies, remarkable sales growth, and focus on delivering quality products at affordable prices.