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What's in Store for The Estee Lauder Companies (EL) Q1 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 first-quarter fiscal 2022 numbers on Nov 2. The Zacks Consensus Estimate for quarterly revenues is pegged at $4,235 million, which suggests an increase of 18.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly earnings is unchanged at $1.67 per share in the past 30 days. The projection suggests a growth of almost 16% from the year-ago quarter’s reported figure. The manufacturer and marketer of skin care, makeup, fragrance and hair care products has a trailing four-quarter earnings surprise of 48.7%, on average. The Estee Lauder Companies delivered an earnings surprise of 52.9% 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, despite the pandemic. The 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 first-quarter fiscal 2022 net sales growth in the band of 17-19% year over year. Organic net sales growth is anticipated between 11% and 13% in the quarter under review. The company highlighted that additional sales from acquisitions, divestitures and brand closures are likely to have added nearly 3 points to growth. Favorable currency translations are likely to have improved growth by almost 3 points during the fiscal first quarter. The company expects adjusted earnings increase of 4-11% at constant currency in the to-be-reported quarter.
Management, in its last earnings call, highlighted that it expects operating expenses to increase in the fiscal first quarter due to investments in the reopening and rebound of brick-and-mortar retail worldwide. It expects certain temporary cost measures to start easing. Management highlighted that international travel has been restricted worldwide due to government regulations and consumer health concerns. These 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.
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 currently carries a Zacks Rank #3 and has an Earnings ESP of +0.38%.
More Stocks With Favorable Combinations
Here are some other companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat.
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What's in Store for The Estee Lauder Companies (EL) Q1 Earnings?
The Estee Lauder Companies Inc. (EL - Free Report) is likely to register growth in the top and the bottom line when it reports first-quarter fiscal 2022 numbers on Nov 2. The Zacks Consensus Estimate for quarterly revenues is pegged at $4,235 million, which suggests an increase of 18.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly earnings is unchanged at $1.67 per share in the past 30 days. The projection suggests a growth of almost 16% from the year-ago quarter’s reported figure. The manufacturer and marketer of skin care, makeup, fragrance and hair care products has a trailing four-quarter earnings surprise of 48.7%, on average. The Estee Lauder Companies delivered an earnings surprise of 52.9% 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, despite the pandemic. The 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 first-quarter fiscal 2022 net sales growth in the band of 17-19% year over year. Organic net sales growth is anticipated between 11% and 13% in the quarter under review. The company highlighted that additional sales from acquisitions, divestitures and brand closures are likely to have added nearly 3 points to growth. Favorable currency translations are likely to have improved growth by almost 3 points during the fiscal first quarter. The company expects adjusted earnings increase of 4-11% at constant currency in the to-be-reported quarter.
Management, in its last earnings call, highlighted that it expects operating expenses to increase in the fiscal first quarter due to investments in the reopening and rebound of brick-and-mortar retail worldwide. It expects certain temporary cost measures to start easing. Management highlighted that international travel has been restricted worldwide due to government regulations and consumer health concerns. These 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.
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 currently carries a Zacks Rank #3 and has an Earnings ESP of +0.38%.
More Stocks With Favorable Combinations
Here are some other companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat.
Coty Inc. (COTY - Free Report) currently has an Earnings ESP of +50.00% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tyson Foods, Inc. (TSN - Free Report) currently has an Earnings ESP of +19.13% and a Zacks Rank of 3.
Hormel Foods Corporation (HRL - Free Report) currently has an Earnings ESP of +1.59% and a Zacks Rank of 3.