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Estee Lauder Cos First Quarter Earnings Preview
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EL
Estee Lauder Cos (NYSE:EL) will release its first quarter results on Thursday, November 1, 2012. Analysts are expecting the company to report a profit of 77 cents a share, up from 70 cents a year ago.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: Surprising Earnings Results
What to Expect: The consensus estimate for Estee Lauder's earnings is 77 cents per share, up 10% from a year ago when the company reported earnings of 70 cents per share.
The consensus estimate is down from 79 cents three months ago, but it hasn't changed in the last month. Analysts are expecting earnings of $2.58 per share for the fiscal year.
Revenue is expected to exceed last year's figure of $2.48 billion by 2.6% and come in at $2.54 billion for the quarter. Revenue for the fiscal year is expected to come in at $10.24 billion.
Company Performance: In the past four quarters, revenue has shown consistent growth. It increased 9.2% to $2.25 billion in the fourth quarter of the last fiscal year. Prior to that, the figure rose 3.8% in the third quarter of the last fiscal year, 9.9% in the second quarter of the last fiscal year and 18.4% in the first quarter of the last fiscal year.
The P/E ratio for EL is 28.1, above the industry average of 17.4. Generally speaking, the higher the P/E ratio, the higher the market expectations for a company's future performance. A simple P/E ratio can reveal the stock's real market value and show how the valuation compares to its industry group or a benchmark like the S&P 500 Index. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: How To Find P/E And PEG Ratios
Over the past quarter, the stock price has increased from $52.38 on July 31, 2012 to $60.79. Estee Lauder's stock price is on a downward streak. The share price has fallen $4.17 since October 16, 2012.
The Competition: The Estee Lauder Companies manufacture skin care, makeup, fragrance, and hair care products. Analysts are optimistic about Estee Lauder, with 10 of 16 assigning it a buy rating. The rating has remained steadfast for the past three months.
The company's closest competitor in the personal and household prods. industry is Procter & Gamble (PG). Analysts are more optimistic about Estee Lauder than about Procter & Gamble. Only 11 out of 23 analysts rate the latter a buy.
Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: Surprising Earnings Results
What to Expect: The consensus estimate for Estee Lauder's earnings is 77 cents per share, up 10% from a year ago when the company reported earnings of 70 cents per share.
The consensus estimate is down from 79 cents three months ago, but it hasn't changed in the last month. Analysts are expecting earnings of $2.58 per share for the fiscal year.
Revenue is expected to exceed last year's figure of $2.48 billion by 2.6% and come in at $2.54 billion for the quarter. Revenue for the fiscal year is expected to come in at $10.24 billion.
Company Performance: In the past four quarters, revenue has shown consistent growth. It increased 9.2% to $2.25 billion in the fourth quarter of the last fiscal year. Prior to that, the figure rose 3.8% in the third quarter of the last fiscal year, 9.9% in the second quarter of the last fiscal year and 18.4% in the first quarter of the last fiscal year.
Over the past quarter, the stock price has increased from $52.38 on July 31, 2012 to $60.79. Estee Lauder's stock price is on a downward streak. The share price has fallen $4.17 since October 16, 2012.
The Competition: The Estee Lauder Companies manufacture skin care, makeup, fragrance, and hair care products. Analysts are optimistic about Estee Lauder, with 10 of 16 assigning it a buy rating. The rating has remained steadfast for the past three months.
The company's closest competitor in the personal and household prods. industry is Procter & Gamble (PG). Analysts are more optimistic about Estee Lauder than about Procter & Gamble. Only 11 out of 23 analysts rate the latter a buy.
by
Investopedia Staff
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