The Estee Lauder Companies Inc. First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component The Estee Lauder Companies, Inc. (NYSE:EL) will unveil its latest earnings on Thursday, November 3, 2011. The Estee Lauder Companies manufacture skin care, makeup, fragrance, and hair care products.

The Estee Lauder Companies, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.18 per share, a rise of 21.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.12. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.18 during the last month. For the year, analysts are projecting profit of $4.28 per share, a rise of 16% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the fourth quarter of the last fiscal year, the company reported net income of 25 cents per share versus a mean estimate of profit of 25 cents per share. In the third quarter of the last fiscal year, the company beat estimates by 14 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 15.3% in revenue from the year-earlier quarter to $2.41 billion.

Analyst Ratings: 12 out of 19 analysts surveyed (63.2%) have a buy rating on Estee Lauder Companies.. This is below the mean analyst rating of 10 competitors, which average 63.9% buy ratings. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 72% to $41.1 million (20 cents a share) from $23.9 million (11 cents a share) the year earlier, meeting analyst expectations. Revenue rose 12% to $2.06 billion from $1.84 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 13.2%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 16.4% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose more than twofold in the third quarter of the last fiscal year and 34.2% in the second quarter of the last fiscal year.

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).

Stock Price Performance: During September 30, 2011 to October 28, 2011, the stock price had risen $13.57 (15.4%) from $87.84 to $101.41. The stock price saw one of its best stretches over the last year between October 3, 2011 and October 14, 2011 when shares rose for 10-straight days, rising 16.4% (+$13.77) over that span. It saw one of its worst periods between May 31, 2011 and June 8, 2011 when shares fell for seven-straight days, falling 7.1% (-$7.28) over that span. Shares are up $20.71 (+25.7%) year to date.

(Source: Xignite Financials)

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

 

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