Estee Lauder Companies Earnings: Here’s Why Investors Like These Results

Estee Lauder Companies Inc. (NYSE:EL) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 3.29%.

Estee Lauder Companies Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 41.18% to $0.24 in the quarter versus EPS of $0.17 in the year-earlier quarter.

Revenue: Rose 6.94% to $2.41 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Estee Lauder Companies Inc. reported adjusted EPS income of $0.24 per share. By that measure, the company beat the mean analyst estimate of $0.21. It missed the average revenue estimate of $2.41 billion.

Quoting Management: Fabrizio Freda, President and Chief Executive Officer, said, “We concluded another outstanding fiscal year with a strong fourth quarter that saw high-single-digit sales gains and exceptional double-digit earnings per share growth. Fiscal 2013 marked another record year in which our Company achieved a number of historic milestones: $10 billion in net sales, 15.2% operating margin and $1 billion in net earnings. We also delivered record earnings per share and operating cash flow.”

Key Stats (on next page)…

Revenue increased 5.04% from $2.29 billion in the previous quarter. EPS decreased 46.67% from $0.45 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.91 to a profit $0.9. For the current year, the average estimate is a profit of $2.61, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)