Estée Lauder Companies
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Estée Lauder Companies beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded.
Margins increased across the board.
Estée Lauder Companies reported revenue of $2.93 billion. The 17 analysts polled by S&P Capital IQ wanted to see revenue of $2.90 billion on the same basis. GAAP reported sales were 7.1% higher than the prior-year quarter's $2.74 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.16. The 21 earnings estimates compiled by S&P Capital IQ forecast $1.05 per share. GAAP EPS of $1.13 for Q2 were 13% higher than the prior-year quarter's $1.00 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 80.6%, 70 basis points better than the prior-year quarter. Operating margin was 22.7%, 40 basis points better than the prior-year quarter. Net margin was 15.3%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.39 billion. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $10.24 billion. The average EPS estimate is $2.57.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 169 members out of 233 rating the stock outperform, and 64 members rating it underperform. Among 85 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give Estée Lauder Companies a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Estée Lauder Companies is outperform, with an average price target of $68.24.
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