Estee Lauder Cos Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Estee Lauder Cos (NYSE:EL) will unveil its latest earnings on Tuesday, February 5, 2013. The Estee Lauder Companies manufacture skin care, makeup, fragrance, and hair care products.

Estee Lauder Cos Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.04 per share, a rise of 3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.14. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.04 during the last month. Analysts are projecting profit to rise by 13.2% compared to last year’s $2.57.

Past Earnings Performance: Last quarter, the company reported net income of 79 cents per share versus a mean estimate of profit of. The company has beaten estimates for the past three quarters.

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A Look Back: In the first quarter, profit rose 7.5% to $299.5 million (76 cents a share) from $278.6 million (70 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 2.9% to $2.55 billion from $2.48 billion.

Wall St. Revenue Expectations: On average, analysts predict $2.9 billion in revenue this quarter, a rise of 5.8% from the year-ago quarter. Analysts are forecasting total revenue of $10.24 billion for the year, a rise of 5.3% from last year’s revenue of $9.72 billion.

Analyst Ratings: With 10 analysts rating the stock a buy, none rating it a sell and six rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 4.6% in the third quarter of the last fiscal year and 24.6% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 9.9% in the second quarter of the last fiscal year, 3.8% in the third quarter of the last fiscal year and 9.2% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.14 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)