Estee Lauder | $EL Stock | Shares Rise On Q4 Revenue Jump

estee lauder

Estee Lauder Companies (NYSE: EL)


Shares of Estee Lauder jumped during regular trading on Monday, after the firm reported fourth quarter earnings and revenue that beat estimates.

The company attributed the strong performance to increased sales of La Mer Skincare and Clinique products

Revenue grew 14.1% while per-share earnings increased by 10 cents from the same period last year. However, the company issued weaker-than-expected first-quarter and full-year sales and earnings guidance.

EL Earnings & Outlook

During the quarter, Estee Lauder reported adjusted earnings of 61 cents per share surpassing estimates of 56 cents, and ahead of adjusted EPS of $0.51 in the year ago period. Its full year earnings were $2.95 per share.

Revenue came in at $3.3 billion during the quarter compared to $2.9 billion in the year-ago period. Wall Street was expecting the company to report revenues of $3.26 billion. Full-year revenue totaled to $13.68 billion.

Estee Lauder hopes to report adjusted earnings per share of between $1.18 and $1.22 for the first quarter and full-year earnings of $4.62 to $4.71 per share. Based on analyst projections, Thompson Reuters expects the company to report adjusted per-share earnings of $1.32 for the first quarter and $4.99 for the full year.

Analysts also expect the company to post revenue of $3.52 billion for the current quarter, and $14.52 billion for the full year.

Estee Lauder CEO Comments

Estee Lauder Chief Executive Fabrizio Freda made the following remarks, “Fiscal 2018 was an outstanding year for our Company. We generated higher sales in every region and product category and gained global share. By investing in our hero franchises, fast-growing channels and digital and social media, we delivered double-digit sales and adjusted earnings per share growth. We achieved record net sales in fiscal 2018 and one of our best performances in the last decade.”

“In fiscal 2019, we will continue to create products that appeal to a more diverse and growing middle class around the world and we are confident that we can continue to achieve industry-leading sales and double-digit earnings per share growth. With a successful strategy that focuses on multiple engines of growth across products, geographies, channels and demographics, we expect to once again gain share globally in fiscal 2019,” Freda added.

Estee Lauder Companies Inc. Company Profile

Estee Lauder Cos., Inc. manufactures and markets skin care, makeup, fragrance, and hair care products. Estee Lauder was founded by Estée Lauder and Joseph Lauder in 1946 and is headquartered in New York.

It sells products under the following brand names: Estée Lauder, Clinique, Tom Ford, Aramis, Prescriptives, Lab Series, Origins, MAC, Bobbi Brown, Tommy Hilfiger, La Mer, Aveda, Jo Malone London, Bumble and bumble, GLAMGLOW, Darphin, Kiton, GoodSkin Labs, Ojon, Smashbox, Osiao, Le Labo, Editions de Parfums Frédéric Malle, By Kilian and RODIN olio lusso.

The firm competes with The Procter & Gamble Company, L’Oreal S.A., Chanel S.A., Shiseido Company Ltd., Beiersdorf AG, Amorepacific, LVMH Moet Hennessey Louis Vuitton, Avon Products Inc., Groupe Clarins and Coty Inc. –Reuters