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What's in Store for The Estee Lauder Companies (EL) Q4 Earnings?
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The Estee Lauder Companies Inc. (EL - Free Report) is likely to register growth in the top and the bottom line when it reports fourth-quarter fiscal 2021 numbers on Aug 19. The Zacks Consensus Estimate for quarterly revenues is pegged at $3,741 million, which suggests a surge of almost 54% from the figure reported in the prior-year quarter. The consensus mark for fiscal 2021 revenues is pegged at $16,032 million, suggesting growth of 12.2% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has moved up by a couple of cents in the past 30 days to 51 cents per share. The projection suggests a significant improvement from a loss of 53 cents reported in the year-ago quarter. The consensus mark for fiscal 2021 earnings is pegged at $6.19 per share, suggesting a surge of 50.2% from the year-ago period’s reported figure. The manufacturer and marketer of skin care, makeup, fragrance, and hair care products has a trailing four-quarter negative earnings surprise of 9.3%, on average. The Estee Lauder Companies delivered an earnings surprise of 25.6% 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. The company’s Skin Care portfolio has been performing well for a while. The Estee Lauder Companies is on track with cost-saving measures. Thanks to the pandemic, management has been implementing stringent cost-curtailment practices.
Management expects sales growth of 44-50% at constant currency (cc) in the fourth quarter of fiscal 2021.The projection reflects impacts from recovery in several parts of the world as well as easier year-over-year comparison. Favorable currency rates are likely to have been accretive by nearly 4 percentage points to sales. Earnings per share (EPS) in fiscal fourth quarter is expected in the range of 38-48 cents, reflecting the sales view, higher investments in innovations as well as online business among others. Favorable currency rates are likely to have been accretive by 2 cents to quarterly EPS.
In fiscal 2021, the company projects net sales growth in the band of 11-12%. Excluding the impact of currency, management expects net sales growth of 9-10%. Management expects fiscal 2021 adjusted EPS in the range of $6.05-$6.15. Adjusted earnings are anticipated to have increased in the range of 45-47% at cc in fiscal 2021.
That said, The Estee Lauder Companies is bearing the brunt of coronavirus-induced hurdles like soft store traffic. Management highlighted that international travel has been majorly restricted worldwide due to government regulations and consumer health concerns. Such restrictions have been negatively impacting consumer traffic in most travel retail 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.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict 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 currently carries a Zacks Rank #3 and has an Earnings ESP of -1.95%.
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What's in Store for The Estee Lauder Companies (EL) Q4 Earnings?
The Estee Lauder Companies Inc. (EL - Free Report) is likely to register growth in the top and the bottom line when it reports fourth-quarter fiscal 2021 numbers on Aug 19. The Zacks Consensus Estimate for quarterly revenues is pegged at $3,741 million, which suggests a surge of almost 54% from the figure reported in the prior-year quarter. The consensus mark for fiscal 2021 revenues is pegged at $16,032 million, suggesting growth of 12.2% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has moved up by a couple of cents in the past 30 days to 51 cents per share. The projection suggests a significant improvement from a loss of 53 cents reported in the year-ago quarter. The consensus mark for fiscal 2021 earnings is pegged at $6.19 per share, suggesting a surge of 50.2% from the year-ago period’s reported figure. The manufacturer and marketer of skin care, makeup, fragrance, and hair care products has a trailing four-quarter negative earnings surprise of 9.3%, on average. The Estee Lauder Companies delivered an earnings surprise of 25.6% 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. The company’s Skin Care portfolio has been performing well for a while. The Estee Lauder Companies is on track with cost-saving measures. Thanks to the pandemic, management has been implementing stringent cost-curtailment practices.
Management expects sales growth of 44-50% at constant currency (cc) in the fourth quarter of fiscal 2021.The projection reflects impacts from recovery in several parts of the world as well as easier year-over-year comparison. Favorable currency rates are likely to have been accretive by nearly 4 percentage points to sales. Earnings per share (EPS) in fiscal fourth quarter is expected in the range of 38-48 cents, reflecting the sales view, higher investments in innovations as well as online business among others. Favorable currency rates are likely to have been accretive by 2 cents to quarterly EPS.
In fiscal 2021, the company projects net sales growth in the band of 11-12%. Excluding the impact of currency, management expects net sales growth of 9-10%. Management expects fiscal 2021 adjusted EPS in the range of $6.05-$6.15. Adjusted earnings are anticipated to have increased in the range of 45-47% at cc in fiscal 2021.
That said, The Estee Lauder Companies is bearing the brunt of coronavirus-induced hurdles like soft store traffic. Management highlighted that international travel has been majorly restricted worldwide due to government regulations and consumer health concerns. Such restrictions have been negatively impacting consumer traffic in most travel retail 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.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict 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 currently carries a Zacks Rank #3 and has an Earnings ESP of -1.95%.
Some Stocks With Favorable Combinations
Chewy, Inc. (CHWY - Free Report) currently has an Earnings ESP of +20.00% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Walmart Inc. (WMT - Free Report) currently has an Earnings ESP of +1.14% and a Zacks Rank of 2.
Target Corporation (TGT - Free Report) currently has an Earnings ESP of +4.93% and a Zacks Rank of 3.