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What Awaits The Estee Lauder Companies (EL) in Q1 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 first-quarter fiscal 2023 earnings on Nov 2. The Zacks Consensus Estimate for quarterly revenues is pegged at $3,917 million, suggesting a fall of 10.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly earnings has moved down by a penny to $1.29 per share in the past seven days, implying a decline of 31.8% from the year-ago quarter’s reported figure. This manufacturer and marketer of skincare, makeup, fragrance and hair care products has a trailing four-quarter earnings surprise of 18.3%, on average. The Estee Lauder Companies delivered an earnings surprise of 31.3% in the last reported quarter.
Things To Note
The Estee Lauder Companies has been battling record inflation, supply chain disruptions, unfavorable currency rates and the risk of a slowdown in several markets worldwide. In its last earnings call, management highlighted that it expects first-quarter fiscal 2023 sales to be affected by continued COVID restrictions in China and Hainan.
Management expects net sales to decline in the band of 10-8% year over year in the first quarter of fiscal 2023. The guidance includes adverse impacts from termination of certain license agreements, the adverse impact associated with Russia and Ukraine as well as unfavorable currency translations. Organic net sales decline is anticipated in the range of 4-6% in the fiscal first quarter. Management projects a quarterly adjusted earnings per share (EPS) decline of 34-28% at constant currency.
The Estee Lauder Companies Inc. Price and EPS Surprise
That being said, The Estee Lauder Companies has been benefiting from strength in its e-commerce business amid consumers shifting 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.
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 -0.13% and carries a Zacks Rank #3.
Some Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings this season.
The Zacks Consensus Estimate for Hershey’s quarterly revenues is pegged at $2.6 billion, which indicates an improvement of almost 11% from the figure reported in the prior-year fiscal quarter. The Zacks Consensus Estimate for the quarterly EPS of $2.07 suggests a 1.4% decline from the figure reported in the year-ago fiscal quarter. HSY has a trailing four-quarter earnings surprise of 8.7%, on average.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +1.35% and a Zacks Rank of 3. K is expected to register top-line growth when it reports third-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.8 billion, which suggests growth of nearly 4% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 96 cents suggests an 11.9% decline from the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 13.3%, on average.
Clorox (CLX - Free Report) currently has an Earnings ESP of +6.10% and a Zacks Rank #3. CLX is anticipated to register top and bottom-line declines when it reports third-quarter 2022 results. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.69 billion, indicating a decline of 6.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Clorox’s bottom line is pegged at 73 cents per share, suggesting a decline of 39.7% from the year-ago quarter’s reported figure. CLX has delivered an earnings beat of 9.3%, on average, in the trailing four quarters.
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What Awaits The Estee Lauder Companies (EL) in Q1 Earnings?
The Estee Lauder Companies Inc. (EL - Free Report) is likely to register a decline in the top and the bottom line when it reports first-quarter fiscal 2023 earnings on Nov 2. The Zacks Consensus Estimate for quarterly revenues is pegged at $3,917 million, suggesting a fall of 10.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly earnings has moved down by a penny to $1.29 per share in the past seven days, implying a decline of 31.8% from the year-ago quarter’s reported figure. This manufacturer and marketer of skincare, makeup, fragrance and hair care products has a trailing four-quarter earnings surprise of 18.3%, on average. The Estee Lauder Companies delivered an earnings surprise of 31.3% in the last reported quarter.
Things To Note
The Estee Lauder Companies has been battling record inflation, supply chain disruptions, unfavorable currency rates and the risk of a slowdown in several markets worldwide. In its last earnings call, management highlighted that it expects first-quarter fiscal 2023 sales to be affected by continued COVID restrictions in China and Hainan.
Management expects net sales to decline in the band of 10-8% year over year in the first quarter of fiscal 2023. The guidance includes adverse impacts from termination of certain license agreements, the adverse impact associated with Russia and Ukraine as well as unfavorable currency translations. Organic net sales decline is anticipated in the range of 4-6% in the fiscal first quarter. Management projects a quarterly adjusted earnings per share (EPS) decline of 34-28% at constant currency.
The Estee Lauder Companies Inc. Price and EPS Surprise
The Estee Lauder Companies Inc. price-eps-surprise | The Estee Lauder Companies Inc. Quote
That being said, The Estee Lauder Companies has been benefiting from strength in its e-commerce business amid consumers shifting 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.
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 -0.13% and carries a Zacks Rank #3.
Some Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings this season.
The Hershey Company (HSY - Free Report) currently has an Earnings ESP of +2.02% and a Zacks Rank #3. HSY is likely to register a top-line improvement when it reports third-quarter 2022 numbers. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hershey’s quarterly revenues is pegged at $2.6 billion, which indicates an improvement of almost 11% from the figure reported in the prior-year fiscal quarter. The Zacks Consensus Estimate for the quarterly EPS of $2.07 suggests a 1.4% decline from the figure reported in the year-ago fiscal quarter. HSY has a trailing four-quarter earnings surprise of 8.7%, on average.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +1.35% and a Zacks Rank of 3. K is expected to register top-line growth when it reports third-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.8 billion, which suggests growth of nearly 4% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 96 cents suggests an 11.9% decline from the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 13.3%, on average.
Clorox (CLX - Free Report) currently has an Earnings ESP of +6.10% and a Zacks Rank #3. CLX is anticipated to register top and bottom-line declines when it reports third-quarter 2022 results. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.69 billion, indicating a decline of 6.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Clorox’s bottom line is pegged at 73 cents per share, suggesting a decline of 39.7% from the year-ago quarter’s reported figure. CLX has delivered an earnings beat of 9.3%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.