Estee Lauder Companies Inc. Earnings Cheat Sheet: Beats Analysts’ Estimates

S&P 500 (NYSE:SPY) component Estee Lauder Companies Inc. (NYSE:EL) reported net income above Wall Street’s expectations for the first quarter. The Estee Lauder Companies manufacture skin care, makeup, fragrance, and hair care products.

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Estee Lauder Companies Earnings Cheat Sheet for the First Quarter

Results: Net income for Estee Lauder Companies Inc. rose to $278.6 million ($1.40 per share) vs. $191.1 million (95 cents per share) in the same quarter a year earlier. This marks a rise of 45.8% from the year earlier quarter.

Revenue: Rose 18.4% to $2.48 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: EL beat the mean analyst estimate of $1.18 per share. It beat the average revenue estimate of $2.41 billion.

Quoting Management: Fabrizio Freda, President and Chief Executive Officer, said, “Our very strong Company performance continued to be broad based, highlighted by healthy top line growth across all categories and regions, strong bottom line growth and continued margin expansion. These results reflect the strength of our brands, the appeal of our superior product innovations and the effectiveness of our focused advertising and marketing spending. The recent economic uncertainty and financial market volatility have not significantly impacted our business. The strength of our underlying fundamentals, our winning strategy and the increasing efficiency of our business model enabled us to significantly outperform the beauty industry and continue to report exceptional results.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 14.2%, with the biggest boost coming in the most recent quarter when revenue rose 18.4% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 1.8 percentage points to 78.4% from the year earlier quarter. Over that span, margins have grown on average 1.5 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 72% and in the third quarter of the last fiscal year, the figure rose more than twofold.

The company beat estimates last quarter after being in line with expectations in the fourth quarter of the last fiscal year with net income of 25 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from $1.98 a share to $1.94 over the last ninety days. For the fiscal year, the average estimate has moved down from $4.37 a share to $4.28 over the last ninety days.

Competitors to Watch: Avon Products, Inc. (NYSE:AVP), Alberto-Culver Company (NYSE:ACV), Revlon, Inc. (NYSE:REV), Elizabeth Arden, Inc. (NASDAQ:RDEN), Inter Parfums, Inc. (NASDAQ:IPAR), Nu Skin Enterprises, Inc. (NYSE:NUS), The Procter & Gamble Co. (NYSE:PG), Parlux Fragrances, Inc. (NASDAQ:PARL), Physicians Formula Hldgs., Inc. (NASDAQ:FACE), and The Stephan Co. (SPCO).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)