The Estée Lauder Companies Inc. (EL) is a global leader in beauty and skincare, known for its diverse portfolio of premium brands. With a market cap of $26.4 billion, the company drives innovation through high-quality products across skincare, makeup, fragrance, and hair care categories, catering to consumers worldwide. EL is set to release its Q2 earnings before the market opens on Tuesday, Feb. 4.
Ahead of the event, analysts expect the New York-based to report a profit of $0.32 per share on a diluted basis, down 63.6% from $0.88 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates over the past four quarters. The company reported an adjusted EPS of $0.14 in the most recent quarter, missing the consensus estimates by 55.6%. Estée Lauder's earnings beat was driven by effective cost management, offsetting softer market demand.
For fiscal 2025, analysts anticipate EL to report EPS of $1.48, down 42.9% from $2.59 in fiscal 2024. In addition, looking forward to fiscal 2026, its EPS is expected to grow 71% year-over-year to $2.53.
Estée Lauder shares have dropped 45.9% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) 21.8% gains and the Consumer Staples Select Sector SPDR Fund’s (XLP) 5.2% rise during the same period.
Estée Lauder's shares dropped 20.9% during the trading session following the release of its disappointing Q1 results on Oct. 31. The company reported Q1 net sales of $3.36 billion, a 4% decline from $3.52 billion in the same period last year. For Q2 2025, Estée Lauder expects reported and organic net sales to decline by 6% to 8% year-over-year, with minimal impact from currency exchange rates based on October 24, 2024 spot rates.
Analysts' consensus rating on Estée Lauder stock is cautious, with a “Hold" overall rating. Out of 28 analysts covering the stock, opinions include four "Strong Buys," one "Moderate Buy," and 23 "Holds."
The average analyst price target for EL is $81.56, indicating a potential upside of 11% from the current levels.
