Beauty products company Estée Lauder (NYSE: EL) will be reporting earnings this Thursday before the bell. Here’s what to expect.
Estée Lauder beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $3.48 billion, up 3.5% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Estée Lauder a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Estée Lauder’s revenue to grow 5.3% year on year to $4.22 billion, a reversal from the 6.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.83 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Estée Lauder has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.1% on average.
Looking at Estée Lauder’s peers in the consumer staples segment, some have already reported their Q4 results, giving us a hint as to what we can expect. J&J Snack Foods’s revenues decreased 5.2% year on year, missing analysts’ expectations by 4.7%, and Tyson Foods reported revenues up 5.1%, topping estimates by 2.7%. Tyson Foods’s stock price was unchanged following the results.
Read our full analysis of J&J Snack Foods’s results here and Tyson Foods’s results here.
There has been positive sentiment among investors in the consumer staples segment, with share prices up 9% on average over the last month. Estée Lauder is up 7.2% during the same time and is heading into earnings with an average analyst price target of $109.75 (compared to the current share price of $115.67).
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