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What Awaits The Estee Lauder Companies (EL) in Q4 Earnings?

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The Estee Lauder Companies Inc. (EL - Free Report) is likely to register a decline in the top and the bottom line when it reports fourth-quarter fiscal 2022 earnings on Aug 18. The Zacks Consensus Estimate for quarterly revenues is pegged at $3,444 million, suggesting a decrease of 12.5% from the figure reported in the prior-year quarter. For fiscal 2022, the consensus mark for revenues is pegged at $17,622 million, suggesting growth of 8.7% from the year-ago period’s reported figure.

The Zacks Consensus Estimate for quarterly earnings has moved down by a penny to 33 cents per share in the past seven days, implying a decline of 57.7% from the year-ago quarter’s reported figure. For fiscal 2022, the consensus mark for earnings is pegged at $7.14 per share, indicating growth of 10.7% from the prior-year’s reported figure. This manufacturer and marketer of skincare, makeup, fragrance and hair care products has a trailing four-quarter earnings surprise of 23.8%, on average. The Estee Lauder Companies delivered an earnings surprise of 14.5% in the last reported quarter.

Things to Note

The Estee Lauder Companies has been benefiting from strength in its e-commerce business amid consumers increasing shift to online shopping. In this regard, management has been implementing new technology and digital experiences, including online booking for each store appointment, omni-channel programs and high-touch services.

Yet, management on its last earnings call highlighted that although it believes the ongoing restrictions in China are temporary, these headwinds are expected to have a greater impact on fiscal fourth-quarter results relative to the third quarter. Moreover, the invasion of Ukraine is a major hurdle.

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 has an Earnings ESP of -9.58% and carries a Zacks Rank #3.

Stocks With Favorable Combination

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

Dollar General (DG - Free Report) currently has an Earnings ESP of +0.99% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has risen by a couple of cents over the past 30 days to $2.92 per share. The consensus mark for DG’s earnings per share suggests 8.6% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dollar General’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.38 billion, which suggests a rise of 8.4% from the figure reported in the prior-year quarter. DG delivered an earnings beat of 2.8%, on average, in the trailing four quarters.

Ollie's Bargain (OLLI - Free Report) currently has an Earnings ESP of +6.06% and a Zacks Rank #2. The company is expected to register a bottom-line decline when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings per share of 33 cents suggests a decline from 52 cents reported in the year-ago quarter.

Ollie's Bargain’s top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $457.5 million, indicating an increase of 10% from the figure reported in the year-ago quarter.

The Children's Place (PLCE - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank #3. The company is likely to register a bottom-line decline when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 97 cents suggests a decline of 43.3% from the year-ago quarter.

The Children's Place's top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $395.6 million, which indicates a decline of 4.4% from the figure reported in the prior-year quarter. PLCE has a trailing four-quarter earnings surprise of 58%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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