New York-based The Estée Lauder Companies Inc. (EL), with a market cap of $36.1 billion, is a leading global manufacturer and marketer in the beauty and personal care industry. The company is expected to release its fiscal Q4 earnings results before the market opens on Monday, Aug. 19.
Ahead of this event, analysts project Estée Lauder to report a profit of $0.25 per share, a significant increase of 257.1% from $0.07 per share in the year-ago quarter. The company holds a solid track record of consistently surpassing Wall Street's bottom-line estimates in each of the last four quarterly reports. EL posted an EPS of $0.97 in Q3 2024, surpassing the consensus estimate by 102.1%.
For fiscal 2024, analysts forecast EL to report EPS of $2.21, a decrease of 36.1% from $3.46 in fiscal 2023. However, looking ahead to fiscal 2025, analysts anticipate a robust EPS growth of 79.2% year-over-year, reaching $3.96.
In 2024, Estée Lauder declined 31.1%, lagging behind the broader S&P 500 Index's ($SPX) 14.5% gain and the S&P 500 Cons Staples Sector SPDR's (XLP) approximately 9% return on a YTD basis.
Shares of Estée Lauder fell 13.2% on May 1, primarily due to the company's downward revision of its annual organic sales forecast, attributing this to persistent weakness in mainland China's prestige beauty market. Despite beating Q3 expectations and reporting signs of recovery in the U.S. and Asia-Pacific, the cautious outlook on sales led to investor concerns.
Analysts' consensus view on Estée Lauder stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 26 analysts covering the stock, eight suggest a "Strong Buy," one gives a "Moderate Buy," and 17 recommend a "Hold."
The above configuration is slightly less bullish than three months ago, with nine analysts suggesting a "Strong Buy." The average analyst price target for EL is $133.96, suggesting a modest potential upside of 33% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
