Estee Lauder beats Q1 adjusted EPS estimates, raises FY outlook

By Reuters News


Overview

  • Prestige beauty firm's fiscal Q1 net sales rose 7% yr/yr

  • Adjusted EPS for fiscal Q1 beat analyst expectations

  • Company raised full-year outlook for sales, margin and EPS


Outlook

  • Company raises fiscal 2027 organic net sales growth outlook to 4.0%-5.5%

  • Company expects adjusted operating margin of 12.9%-13.7% for fiscal 2027

  • Company sees fiscal 2027 adjusted EPS at $3.20-$3.45


Result Drivers

  • COST AND OPERATIONAL EFFICIENCIES - Co said margin gains were driven by cost savings, operational efficiencies and strategic pricing actions

  • ASIA TRAVEL RETAIL AND CHINA - Co said growth was led by Asia travel retail and Mainland China, with increased sales in airports and improved online retail

  • FRAGRANCE GROWTH - Double-digit growth in fragrance sales, led by luxury brands such as Le Labo, TOM FORD and Jo Malone London


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Adjusted EPS

Beat

$0.72

$0.51 (21 Analysts)

Q1 EPS

$0.64


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 14 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the personal products peer group is "hold."

  • Wall Street's median 12-month price target for Estee Lauder Companies Inc is $115.00, about 5.3% above its October 30 closing price of $109.23

  • The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 26 three months ago


Reuters Recommended Reads

  • Oct 30 - Colgate-Palmolive tops Q3 adjusted profit estimates

  • Oct 30 - Church & Dwight beat Q3 sales estimates on volume growth, raises FY outlook

  • Oct 30 - Michael Kors owner Capri soars after raising annual forecasts


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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