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Estee Lauder (EL) to Report Q2 Earnings: A Beat in Store?
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We expect Estee Lauder Companies Inc. (EL - Free Report) to beat estimates when it reports second-quarter fiscal 2017 results on Feb 2, 2017.
The company has exhibited decent performance in the past one year, evident from positive earnings surprises in all of the last four quarters, at an average surprise of 11.9%. Notably, during first-quarter 2017, Estee Lauder beat earnings estimates by 6.33%.
The solid fundamental of the stock is visible in the share price movement. The stock price has declined 5.3% in the last three month, outperforming the Zacks categorized Cosmetics and Toiletries industry which declined 17.1% during the same period.
Why a Likely Positive Surprise?
Our proven model shows that Estee Lauder is likely to beat earnings because it has the right combination of two key ingredients.
Zacks Earnings ESP: The company’s Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.86%.This is because the Most Accurate estimate is at $1.17, while the Zacks Consensus Estimate is pegged lower at $1.16. This is very meaningful and a leading indicator of a likely positive earnings surprise for shares. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Estee Lauder currently carries a Zacks Rank #3 (Hold). Note that stocks with Zacks Ranks of #1 (Strong Buy), 2 (Buy) and 3 have a significantly higher chance of beating earnings. The sell rated stocks (#4 and 5) should never be considered going into an earnings announcement.
The combination of Estee Lauder’s Zacks Rank # 3 and an Earnings ESP of 0.86%, makes us reasonably optimistic about a possible earnings beat on Feb 2.
Factors that are Driving Better-than-Expected Results
Estee Lauder is undertaking several strategic acquisitions to expand in the makeup category. The company took over prestige makeup brand, BECCA's in Nov 2016. The brand’s strong presence in fast growing North America specialty multi-retailers and a loyal customer base is likely to be beneficial for the company. Further, in Dec 2016, it acquired makeup brand Too Faced as an attempt to bolster its presence in the cosmetics category. These acquisitions are expected to be accretive to second-quarter earnings.
Further, the company introduced products like anti-ageing skincare and foundation which were well received by the ageing population of the U.S. Products like The Estee Edit and Advanced Night Repair PowerFoil Mask are expected to help the company bolster its market share in the makeup category in the to-be-reported quarter.
Estee Lauder Companies, Inc. (The) Price and EPS Surprise
The company is expected to report sales of $3.24 billion, up 3.81% year over year.
Other Stocks to Consider
Here are some stocks that investors may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Coty Inc. (COTY - Free Report) has an Earnings ESP of +5.6% and a Zacks Rank #3.
Sanderson Farms Inc. has an Earnings ESP of +4.48% and a Zacks Rank #3.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
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Estee Lauder (EL) to Report Q2 Earnings: A Beat in Store?
We expect Estee Lauder Companies Inc. (EL - Free Report) to beat estimates when it reports second-quarter fiscal 2017 results on Feb 2, 2017.
The company has exhibited decent performance in the past one year, evident from positive earnings surprises in all of the last four quarters, at an average surprise of 11.9%. Notably, during first-quarter 2017, Estee Lauder beat earnings estimates by 6.33%.
The solid fundamental of the stock is visible in the share price movement. The stock price has declined 5.3% in the last three month, outperforming the Zacks categorized Cosmetics and Toiletries industry which declined 17.1% during the same period.
Why a Likely Positive Surprise?
Our proven model shows that Estee Lauder is likely to beat earnings because it has the right combination of two key ingredients.
Zacks Earnings ESP: The company’s Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.86%.This is because the Most Accurate estimate is at $1.17, while the Zacks Consensus Estimate is pegged lower at $1.16. This is very meaningful and a leading indicator of a likely positive earnings surprise for shares. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Estee Lauder currently carries a Zacks Rank #3 (Hold). Note that stocks with Zacks Ranks of #1 (Strong Buy), 2 (Buy) and 3 have a significantly higher chance of beating earnings. The sell rated stocks (#4 and 5) should never be considered going into an earnings announcement.
The combination of Estee Lauder’s Zacks Rank # 3 and an Earnings ESP of 0.86%, makes us reasonably optimistic about a possible earnings beat on Feb 2.
Factors that are Driving Better-than-Expected Results
Estee Lauder is undertaking several strategic acquisitions to expand in the makeup category. The company took over prestige makeup brand, BECCA's in Nov 2016. The brand’s strong presence in fast growing North America specialty multi-retailers and a loyal customer base is likely to be beneficial for the company. Further, in Dec 2016, it acquired makeup brand Too Faced as an attempt to bolster its presence in the cosmetics category. These acquisitions are expected to be accretive to second-quarter earnings.
Further, the company introduced products like anti-ageing skincare and foundation which were well received by the ageing population of the U.S. Products like The Estee Edit and Advanced Night Repair PowerFoil Mask are expected to help the company bolster its market share in the makeup category in the to-be-reported quarter.
Estee Lauder Companies, Inc. (The) Price and EPS Surprise
Estee Lauder Companies, Inc. (The) Price and EPS Surprise | Estee Lauder Companies, Inc. (The) Quote
The company is expected to report sales of $3.24 billion, up 3.81% year over year.
Other Stocks to Consider
Here are some stocks that investors may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Campbell Soup Company (CPB - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Coty Inc. (COTY - Free Report) has an Earnings ESP of +5.6% and a Zacks Rank #3.
Sanderson Farms Inc. has an Earnings ESP of +4.48% and a Zacks Rank #3.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>