The Estee Lauder Companies Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component The Estee Lauder Companies, Inc. (NYSE:EL) will unveil its latest earnings on Friday, May 4, 2012. 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 33 cents per share, a decline of 5.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 41 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 33 cents during the last month. Analysts are projecting profit to rise by 21.6% versus last year to $2.25.

Past Earnings Performance: The company fell in line with estimates last quarter after topping forecasts the quarter before. After coming in above the mean estimate by 10 cents in the first quarter, the company fell in line with expectations by reporting profit of $1.01 per share last quarter.

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Wall St. Revenue Expectations: Analysts predict a rise of 3.7% in revenue from the year-earlier quarter to $2.25 billion.

Analyst Ratings: Analysts are bullish on this stock, with 10 analysts rating it as a buy, one rating it as a sell and five rating it as a hold.

A Look Back: In the second quarter, profit rose 15.4% to $396.7 million ($1 a share) from $343.9 million (86 cents a share) the year earlier, meeting analyst expectations. Revenue rose 9.9% to $2.74 billion from $2.49 billion.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 72% in the fourth quarter of the last fiscal year and 45.8% in the first quarter before increasing again in the second quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 16.4% in the third quarter of the last fiscal year, 12% in the fourth quarter of the last fiscal year and 18.4% in the first quarter before increasing again in the second quarter.

Stock Price Performance: Between March 2, 2012 and April 30, 2012, the stock price had risen $7.00 (12%), from $58.35 to $65.35. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 16, 2012, when shares rose for nine straight days, increasing 9.6% (+$5.57) 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, dropping 7.1% (-$3.61) over that span.

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

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