We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in Store for The Estee Lauder Companies (EL) Q3 Earnings
Read MoreHide Full Article
The Estee Lauder Companies Inc. (EL - Free Report) is likely to post growth in the top and the bottom line when it reports third-quarter fiscal 2021 numbers on May 3. The Zacks Consensus Estimate for revenues is pegged at $3.92 billion, which suggests growth of 17.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the bottom line has moved up by a couple of cents to $1.28 per share in the past seven. The projection indicates a surge of 50.6% from the year-ago quarter’s reported figure. Notably, The Estee Lauder Companies’ bottom line has outperformed the Zacks Consensus Estimate by 56.3% in the last reported quarter.
The Estee Lauder Companies Inc. Price and EPS Surprise
The Estee Lauder Companies has been benefiting from solid e-commerce business, especially amid the coronavirus outbreak. Moreover, the company’s operation in the Asia-Pacific region has been driving growth for a while now. Additionally, The Estee Lauder Companies' performance is benefiting from positive impacts from Have&Be Co. Ltd. (“Dr. Jart+”) acquisition, which was concluded in December 2019. Apart from this, management is implementing various cost-curtailment measures amid uncertainties related to COVID-19.
Incidentally, the company expects net sales growth of 13-14% in the third quarter of fiscal 2021. Removing the impact of currency, the company expects net sales improvement of 10-11% in the quarter under review. During its fiscal second-quarter earnings call, management highlighted that it has a solid lineup of product offerings and activations for the Lunar New Year. Further, adjusted earnings are likely to have had grown in the range of 26-38% on a constant-currency basis in the fiscal third quarter. Notably, the company expects earnings per share in the range of $1.10-$1.20. The figure reflects sales outlook as well as a robust balance between cost-savings efforts and investment in key growth areas like online and technology.
However, The Estee Lauder Companies is bearing the brunt of coronavirus-induced hurdles like soft store traffic. Management, in its last earnings call, highlighted that surging COVID-19 infections have been leading to renewed store closures, restrictions and lockdowns in several locations.
Apart from this, the company is on track with its Post-COVID Business Acceleration Program that was introduced in August 2020. As part of the program it had unveiled plans to reduce retail footprint. Through this plan, management expected shutting 10-15% of its freestanding stores worldwide along with various low-performing department store counters. Also, the company mentioned that various retailers decided to undertake planned reduction of their footprint via door closures amid the pandemic.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for The Estee Lauder Companies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Estee Lauder Companies carries a Zacks Rank #3 and an Earnings ESP of +3.44%.
More Stocks With Favorable Combinations
Here are some more companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.
Medifast (MED - Free Report) currently has an Earnings ESP of +6.25% and carries a Zacks Rank #3.
Sysco Corporation (SYY - Free Report) currently has an Earnings ESP of +5.00% and carries a Zacks Rank #3.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Image: Bigstock
What's in Store for The Estee Lauder Companies (EL) Q3 Earnings
The Estee Lauder Companies Inc. (EL - Free Report) is likely to post growth in the top and the bottom line when it reports third-quarter fiscal 2021 numbers on May 3. The Zacks Consensus Estimate for revenues is pegged at $3.92 billion, which suggests growth of 17.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the bottom line has moved up by a couple of cents to $1.28 per share in the past seven. The projection indicates a surge of 50.6% from the year-ago quarter’s reported figure. Notably, The Estee Lauder Companies’ bottom line has outperformed the Zacks Consensus Estimate by 56.3% in the last reported quarter.
The Estee Lauder Companies Inc. Price and EPS Surprise
The Estee Lauder Companies Inc. price-eps-surprise | The Estee Lauder Companies Inc. Quote
Things to Note
The Estee Lauder Companies has been benefiting from solid e-commerce business, especially amid the coronavirus outbreak. Moreover, the company’s operation in the Asia-Pacific region has been driving growth for a while now. Additionally, The Estee Lauder Companies' performance is benefiting from positive impacts from Have&Be Co. Ltd. (“Dr. Jart+”) acquisition, which was concluded in December 2019. Apart from this, management is implementing various cost-curtailment measures amid uncertainties related to COVID-19.
Incidentally, the company expects net sales growth of 13-14% in the third quarter of fiscal 2021. Removing the impact of currency, the company expects net sales improvement of 10-11% in the quarter under review. During its fiscal second-quarter earnings call, management highlighted that it has a solid lineup of product offerings and activations for the Lunar New Year. Further, adjusted earnings are likely to have had grown in the range of 26-38% on a constant-currency basis in the fiscal third quarter. Notably, the company expects earnings per share in the range of $1.10-$1.20. The figure reflects sales outlook as well as a robust balance between cost-savings efforts and investment in key growth areas like online and technology.
However, The Estee Lauder Companies is bearing the brunt of coronavirus-induced hurdles like soft store traffic. Management, in its last earnings call, highlighted that surging COVID-19 infections have been leading to renewed store closures, restrictions and lockdowns in several locations.
Apart from this, the company is on track with its Post-COVID Business Acceleration Program that was introduced in August 2020. As part of the program it had unveiled plans to reduce retail footprint. Through this plan, management expected shutting 10-15% of its freestanding stores worldwide along with various low-performing department store counters. Also, the company mentioned that various retailers decided to undertake planned reduction of their footprint via door closures amid the pandemic.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for The Estee Lauder Companies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Estee Lauder Companies carries a Zacks Rank #3 and an Earnings ESP of +3.44%.
More Stocks With Favorable Combinations
Here are some more companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.
Tyson Foods, Inc. (TSN - Free Report) currently has an Earnings ESP of +16.03% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medifast (MED - Free Report) currently has an Earnings ESP of +6.25% and carries a Zacks Rank #3.
Sysco Corporation (SYY - Free Report) currently has an Earnings ESP of +5.00% and carries a Zacks Rank #3.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>