Estee Lauder Companies Up 1.42% To $280.44 After Earnings Beat

Thursday, August 18, 2022 - Estee Lauder Companies (EL) reported upside earnings and revenues today.

The consensus among analysts for Estee Lauder Companies was for an earnings per share (EPS) of $0.34. The firm was able to surpass those projections, reporting an EPS of $0.42, a positive surprise of $0.08 (24%). Profits fell 46% year-over-year after reporting an EPS of $0.78 in its year-ago quarter. The negative growth rate signals that the Consumer Defensive company isn't performing well amid current economic conditions.

Revenues were upbeat at $3.6 billion. That represents a 9.53% decrease in revenues from the year-ago report and is 3.82% higher than consensus estimates set at $3.4 billion.

The stock is up 1.42% to $280.44 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

The average recommendation from Wall Street analysts was a Strong Buy which may get revised based on this new data.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 51. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.

Estee Lauder is the world leader in the global prestige beauty market, participating across skincare (59% of fiscal 2021 sales), makeup (26%), fragrance (12%), and haircare (3%) categories, with popular brands such as Estee Lauder, Clinique, MAC, La Mer, Jo Malone, Aveda, Bobbi Brown, Too Faced, Origins, Dr. Jart+, and The Ordinary. The firm operates in 150 countries, with 23% of fiscal 2021 revenue stemming from the Americas, 43% from Europe, the Middle East and Africa, and 34% from Asia-Pacific. The company sells its products through department stores, travel retail, multibrand specialty beauty stores, brand-dedicated freestanding stores, e-commerce, salons/spas, and perfumeries.