Estée Lauder Companies
The 10-second takeaway
For the quarter ended March 31 (Q3), Estée Lauder Companies missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. GAAP earnings per share increased significantly.
Gross margins increased, operating margins dropped, net margins expanded.
Estée Lauder Companies logged revenue of $2.29 billion. The 17 analysts polled by S&P Capital IQ looked for a top line of $2.33 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.45. The 21 earnings estimates compiled by S&P Capital IQ anticipated $0.33 per share. GAAP EPS of $0.45 for Q3 were 36% higher than the prior-year quarter's $0.33 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 80.7%, 160 basis points better than the prior-year quarter. Operating margin was 10.6%, 10 basis points worse than the prior-year quarter. Net margin was 7.8%, 200 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.44 billion. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $10.22 billion. The average EPS estimate is $2.61.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 171 members out of 236 rating the stock outperform, and 65 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 $70.35.
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