Estee Lauder Companies
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Estee Lauder Companies met expectations on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share improved significantly.
Margins increased across the board.
Estee Lauder Companies reported revenue of $2.74 billion. The 16 analysts polled by S&P Capital IQ expected net sales of $2.74 billion. Sales were 9.9% higher than the prior-year quarter's $2.49 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.01. The 18 earnings estimates compiled by S&P Capital IQ averaged $1.01 per share on the same basis. GAAP EPS of $1.00 for Q2 were 16% higher than the prior-year quarter's $0.86 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 79.9%, 150 basis points better than the prior-year quarter. Operating margin was 22.3%, 80 basis points better than the prior-year quarter. Net margin was 14.5%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.28 billion. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $9.67 billion. The average EPS estimate is $2.24.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 161 members out of 219 rating the stock outperform, and 58 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 give Estee Lauder Companies a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Estee Lauder Companies is outperform, with an average price target of $61.87.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.