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Estee Lauder Companies First Quarter Earnings
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EL
Estee Lauder Companies (NYSE:EL) announced its results for the first quarter on November 1, 2012. The Estee Lauder Companies manufacture skin care, makeup, fragrance, and hair care products.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: Everything Investors Need To Know About Earnings
The Numbers: Estee Lauder Companies managed to exceed estimates with stronger-than-expected EPS and revenues. The company reported adjusted net income of 79 cents per share versus the 77 cents per share estimate and revenues of $2.55 billion versus the $2.25 billion estimate. Revenue climbed 2.9% from the same period last year. Estee Lauder Companies' revenue has grown during each of the past four quarters on a year-over-year basis. For the first quarter, the company reported net income of $299.6 million. According to the reported number, this is up 7.5% from last year's figures. Last quarter marked the third in a row of rising net income.
Management Quote: Fabrizio Freda, President and Chief Executive Officer, said, "In this new fiscal year, we continue to be guided by our winning strategy and commitment to profitable growth. Our first quarter results demonstrate the solid fundamentals underlying our business and I am pleased and encouraged with our performance even in softer markets. Organic sales growth for the quarter was in line with our expectations, while earnings per share were better than planned. In particular, strong growth in North America and China drove our sales gains and, when coupled with cost of sales improvements and effective expense management, we generated a significant operating margin increase."
A Look Back: Net income has increased 19.6% year-over-year on average across the last five quarters. The biggest gain came in the first quarter of the last fiscal year, when income climbed 45.8% from the year-earlier quarter.
Looking Ahead: For next quarter, analysts have a more positive outlook about the company's expected results. The average estimate for the second quarter is $1.14 per share, up from $1.12 90 days ago. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. At $2.58 per share, the average estimate for the fiscal year has risen from $2.56 60 days ago.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: Everything Investors Need To Know About Earnings
The Numbers: Estee Lauder Companies managed to exceed estimates with stronger-than-expected EPS and revenues. The company reported adjusted net income of 79 cents per share versus the 77 cents per share estimate and revenues of $2.55 billion versus the $2.25 billion estimate. Revenue climbed 2.9% from the same period last year. Estee Lauder Companies' revenue has grown during each of the past four quarters on a year-over-year basis. For the first quarter, the company reported net income of $299.6 million. According to the reported number, this is up 7.5% from last year's figures. Last quarter marked the third in a row of rising net income.
Management Quote: Fabrizio Freda, President and Chief Executive Officer, said, "In this new fiscal year, we continue to be guided by our winning strategy and commitment to profitable growth. Our first quarter results demonstrate the solid fundamentals underlying our business and I am pleased and encouraged with our performance even in softer markets. Organic sales growth for the quarter was in line with our expectations, while earnings per share were better than planned. In particular, strong growth in North America and China drove our sales gains and, when coupled with cost of sales improvements and effective expense management, we generated a significant operating margin increase."
A Look Back: Net income has increased 19.6% year-over-year on average across the last five quarters. The biggest gain came in the first quarter of the last fiscal year, when income climbed 45.8% from the year-earlier quarter.
Looking Ahead: For next quarter, analysts have a more positive outlook about the company's expected results. The average estimate for the second quarter is $1.14 per share, up from $1.12 90 days ago. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. At $2.58 per share, the average estimate for the fiscal year has risen from $2.56 60 days ago.
by
Investopedia Staff
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