Estee Lauder Cos Fourth Quarter Earnings Preview
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EL
Estee Lauder Cos (NYSE:EL) will release its fourth quarter results on Tuesday, August 14, 2012. Analysts are expecting the company to report a profit of 16 cents a share, up from 13 cents a year ago.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: Earnings: Quality Means Everything
What to Expect: Estee Lauder is expected to report 16 cents per share, up 23.1% from a year ago when the company reported earnings of 13 cents per share.
Analysts are expecting earnings of $2.26 per share for the fiscal year.
Estee Lauder is expected to beat last year's reported revenue of $2.06 billion and come in at $2.21 billion for the quarter. Estee Lauder is expected to report revenue of $9.67 billion for the fiscal year.
Company Performance: Revenue has risen for four consecutive quarters now. It rose 3.8% in the third quarter, 9.9% in the second quarter, 18.4% in the first quarter and 12% in the fourth quarter of the last fiscal year.
EL's P/E ratio of 25.5 is above the industry average of 18.27. Generally speaking, the higher the P/E ratio, the higher the market expectations for a company's future performance. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Investment Valuation Ratios: Price/Earnings Ratio
Since May 11, 2012, the stock price has fallen 6.5% to $54.37 from $58.16. July 5, 2012 to July 11, 2012 marked one of Estee Lauder's worst periods, as the share price fell $4.90.
The Competition: The Estee Lauder Companies manufacture skin care, makeup, fragrance, and hair care products. Most analysts (10 of 16) rate Estee Lauder a buy. They have become increasingly pessimistic about the stock, as the number of buy ratings has dropped slightly over the last 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 10 out of 23 analysts rate the latter a buy.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: Earnings: Quality Means Everything
What to Expect: Estee Lauder is expected to report 16 cents per share, up 23.1% from a year ago when the company reported earnings of 13 cents per share.
Analysts are expecting earnings of $2.26 per share for the fiscal year.
Estee Lauder is expected to beat last year's reported revenue of $2.06 billion and come in at $2.21 billion for the quarter. Estee Lauder is expected to report revenue of $9.67 billion for the fiscal year.
Company Performance: Revenue has risen for four consecutive quarters now. It rose 3.8% in the third quarter, 9.9% in the second quarter, 18.4% in the first quarter and 12% in the fourth quarter of the last fiscal year.
Since May 11, 2012, the stock price has fallen 6.5% to $54.37 from $58.16. July 5, 2012 to July 11, 2012 marked one of Estee Lauder's worst periods, as the share price fell $4.90.
The Competition: The Estee Lauder Companies manufacture skin care, makeup, fragrance, and hair care products. Most analysts (10 of 16) rate Estee Lauder a buy. They have become increasingly pessimistic about the stock, as the number of buy ratings has dropped slightly over the last 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 10 out of 23 analysts rate the latter a buy.

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