Estee Lauder Companies, Inc. (EL) is one of the world's leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products.
Estee Lauder has been posting better-than-expected results over the past several quarters backed by organic sales growth, product innovation and cost savings measures. Although these positive trends have resulted in earnings growth, currency headwinds has led to declining export volume for the cosmetics company over the past few quarters as international business accounts for more than 80% of its revenues. Due to this, investors are eagerly awaiting EL’s earnings report.
Investors should also note the recent earnings estimate revisions for EL, as the consensus estimate has been moving slightly lower. However, EL does have a decent history when it comes to recent earnings reports as the stock has beaten estimates in three of the last four quarters, making for an average surprise of 11.25%.
Currently, EL has a Zacks Rank #3 (Hold), but that could definitely change following Estee Lauder’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: EL posted earnings of $1.13, better than our consensus of $1.05. Investors should note that these figures take out stock option expenses.
Revenue: EL posted revenues of $3.04 billion. This beat our consensus estimate of $3.01 billion.
Key Stats to Note: Despite improvement in overall business, EL continues to expect slower growth in Hong Kong and China, a decline in spending by Chinese, Russian and Brazilian travelers and unfavorable foreign exchange in fiscal 2015.
Check back later for our full write up on this EL earnings report later!
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