Estee Lauder Earnings Cheat Sheet: Fifth Straight Double-Digit Quarterly Sales Growth

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

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Estee Lauder Companies Earnings Cheat Sheet for the Third Quarter

Results: Net income for Estee Lauder Companies Inc. rose to $125.1 million (62 cents/share) vs. $57.5 million (28 cents/share) in the same quarter a year earlier. A more than twofold rise from the year earlier quarter.

Revenue: Rose 16.4% to $2.17 billion YoY.

Actual vs. Wall St. Expectations: EL beat the mean analyst estimate of 56 cents/share. Estimates ranged from 50 cents per share to 63 cents per share.

Quoting Management: Fabrizio Freda, President and Chief Executive Officer, said, “Our results for the quarter and year to date continue to validate our strategic direction. Our focus on building enduring brand equities and on serving the global demand for prestige quality products and high-touch services is clearly resonating with consumers.”

Key Stats: Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 1.6 percentage points to 77.7% from the year earlier quarter. Over that span, margins have grown on average 2.1 percentage points per quarter on a year-over-year basis.

Over the last five quarters, revenue has increased 11.9% on average year over year. The biggest increase came in the most recent quarter, when revenue rose 16.4% from the year earlier quarter.

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), Johnson & Johnson (NYSE:JNJ) and The Stephan Co. (SPCO)

Stock Performance: Shares of EL are trading at $98 per share as of May 5, 2011 at 8:44 AM ET, up 2.29% from the previous close.


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