Estee Lauder beats Q1 adjusted EPS estimates, raises FY outlook
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
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(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.)