Can Estée Lauder Companies Beat These Numbers?

Seth Jayson, The Motley Fool
Updated

Estée Lauder Companies (NYS: EL) is expected to report Q1 earnings on Nov. 1. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Estée Lauder Companies's revenues will increase 2.4% and EPS will expand 7.0%.

The average estimate for revenue is $2.53 billion. On the bottom line, the average EPS estimate is $0.76.


Revenue details
 Last quarter, Estée Lauder Companies logged revenue of $2.25 billion. GAAP reported sales were 9.2% higher than the prior-year quarter's $2.06 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 Last quarter, non-GAAP EPS came in at $0.17. GAAP EPS of $0.13 for Q4 were 30% higher than the prior-year quarter's $0.10 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
 For the preceding quarter, gross margin was 80.5%, 110 basis points better than the prior-year quarter. Operating margin was 4.9%, 120 basis points better than the prior-year quarter. Net margin was 2.3%, 30 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $10.24 billion. The average EPS estimate is $2.57.

Investor sentiment
 The stock has a one-star rating (out of five) at Motley Fool CAPS, with 162 members out of 226 rating the stock outperform, and 64 members rating it underperform. Among 83 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 62 give Estée Lauder Companies a green thumbs-up, and 21 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Estée Lauder Companies is outperform, with an average price target of $65.34.

The article Can Estée Lauder Companies Beat These Numbers? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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