Estee Lauder Earnings Cheat Sheet: Strong Margins Continue as Net Income Rises

S&P 500 (NYSE:SPY) component Estee Lauder Companies Inc. (NYSE:EL) reported its results for the fourth 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 Fourth Quarter

Results: Net income for the personal products company rose to $43.2 million (20 cents per share) vs. $23.9 million (11 cents per share) in the same quarter a year earlier. This marks a rise of 80.8% from the year earlier quarter.

Revenue: Rose 12% to $2.06 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: EL reported adjusted net income of 25 cents per share. By that measure, it topped the mean analyst estimate of 24 cents per share. Analysts were expecting revenue of $2.03 billion.

Quoting Management: Fabrizio Freda, President and Chief Executive Officer, said, “Fiscal 2011 was an outstanding year for our Company. We achieved record sales, gross margin, operating margin, earnings per share and operating cash flow. These results confirm that our strategy is working and has allowed us to reach our original 13% operating margin target two years earlier than anticipated. We are pleased that our performance is creating greater stockholder value, as evidenced by our increased market capitalization this past year.”

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 1.9 percentage points to 79.4% from the year earlier quarter. Over that span, margins have grown on average 1.8 percentage points per quarter on a year-over-year basis.

Revenue has risen the past four quarters. Revenue increased 16.4% to $2.17 billion in the third quarter. The figure rose 10.2% in the second quarter from the year earlier and climbed 14.1% in the first quarter from the year-ago 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).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)