We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Consensus Estimate for revenues is pegged at $3,495 million, suggesting a decrease of 1.9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has deteriorated by a penny to a loss of 4 cents per share over the past 30 days. The projection indicates a significant decline from earnings of 42 cents reported in the year-ago period. The cosmetics giant has a trailing four-quarter earnings surprise of 13.2%, on average.
For fiscal 2023, the consensus mark for revenues stands at $15.8 billion, suggesting a drop of 10.9% from the year-ago period. The consensus estimate for earnings per share (EPS) is pegged at $3.35 presently, indicating a 55.7% slump from the figure reported in the year-ago quarter.
The Estee Lauder Companies Inc. Price, Consensus and EPS Surprise
The impacts of inflation and unpredictable currency movements have been posing concerns for The Estee Lauder Companies. Additionally, the company has been witnessing greater volatility in the recovery across Asia travel retail. Shipments to duty-free retailers were under pressure in Korea in the last reported quarter.
The slower-than-anticipated recovery across Asia travel retail also weighed on the company’s gross margin. These included obsolescence charges, increased promotional costs, an unfavorable brand and category mix and increased inventory levels, among others. Any persistence of these factors remains a concern for the quarter under review and fiscal 2023.
For fiscal 2023, management projects net sales to have declined in the band of 10-12% year over year, including an unfavorable currency impact. The view includes a slower-than-anticipated return to growth across Asia travel retail and the termination of certain license agreements.
Organic net sales are anticipated to have dropped 5-7%, including currency headwinds. Adjusted earnings per share (EPS) are expected in the band of $3.29-$3.39, suggesting a 53-55% decline from the year-ago period’s levels. The bottom line is expected to have declined 50-51% at cc.
However, prudent pricing and enhanced product distribution to retailers are likely to have acted as upsides. Organic sales are likely to have increased in the fourth quarter. Apart from Asia, the company expects balanced growth in the fourth quarter in almost all other markets globally. It expects increased consumer demand in mainland China. We expect organic revenue growth of 2.4%, 5.4% and 7.5% respectively in the Americas, EMEA and Asia Pacific regions in the fourth quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for The Estee Lauder Companies this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
The Estee Lauder Companies has an Earnings ESP of -58.13% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Walmart Inc. (WMT - Free Report) currently has an Earnings ESP of +2.10% and a Zacks Rank #2. The company’s top line is expected to increase year over year when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for Walmart’s quarterly revenues is pegged at $159.8 billion, calling for growth of 4.6% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for the quarterly EPS is pegged at $1.69, indicating a decrease of 4.5% from the figure reported in the year-ago quarter. WMT has a trailing four-quarter earnings surprise of around 12%, on average.
Coty (COTY - Free Report) currently has an Earnings ESP of +20.00% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.3 billion, which implies a rise of 13.4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 2 cents, which indicates 300% growth from the year-ago period figure. COTY has a trailing four-quarter earnings surprise of 145%, on average.
Hormel Foods (HRL - Free Report) currently has an Earnings ESP of +3.45% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for Hormel Foods’ quarterly revenues is pegged at $3.1 billion, which implies a rise of 2.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 41 cents, which indicates a 2.5% jump from the year-ago period figure. HRL has a trailing four-quarter negative earnings surprise of 2.3%, on average.
Image: Bigstock
What to Expect From The Estee Lauder Companies (EL) Q4 Earnings?
The Estee Lauder Companies Inc. (EL - Free Report) is likely to register a top-and-bottom-line decline when it reports fourth-quarter fiscal 2023 earnings on Aug 18.
The Zacks Consensus Estimate for revenues is pegged at $3,495 million, suggesting a decrease of 1.9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has deteriorated by a penny to a loss of 4 cents per share over the past 30 days. The projection indicates a significant decline from earnings of 42 cents reported in the year-ago period. The cosmetics giant has a trailing four-quarter earnings surprise of 13.2%, on average.
For fiscal 2023, the consensus mark for revenues stands at $15.8 billion, suggesting a drop of 10.9% from the year-ago period. The consensus estimate for earnings per share (EPS) is pegged at $3.35 presently, indicating a 55.7% slump from the figure reported in the year-ago quarter.
The Estee Lauder Companies Inc. Price, Consensus and EPS Surprise
The Estee Lauder Companies Inc. price-consensus-eps-surprise-chart | The Estee Lauder Companies Inc. Quote
Factors to Consider
The impacts of inflation and unpredictable currency movements have been posing concerns for The Estee Lauder Companies. Additionally, the company has been witnessing greater volatility in the recovery across Asia travel retail. Shipments to duty-free retailers were under pressure in Korea in the last reported quarter.
The slower-than-anticipated recovery across Asia travel retail also weighed on the company’s gross margin. These included obsolescence charges, increased promotional costs, an unfavorable brand and category mix and increased inventory levels, among others. Any persistence of these factors remains a concern for the quarter under review and fiscal 2023.
For fiscal 2023, management projects net sales to have declined in the band of 10-12% year over year, including an unfavorable currency impact. The view includes a slower-than-anticipated return to growth across Asia travel retail and the termination of certain license agreements.
Organic net sales are anticipated to have dropped 5-7%, including currency headwinds. Adjusted earnings per share (EPS) are expected in the band of $3.29-$3.39, suggesting a 53-55% decline from the year-ago period’s levels. The bottom line is expected to have declined 50-51% at cc.
However, prudent pricing and enhanced product distribution to retailers are likely to have acted as upsides. Organic sales are likely to have increased in the fourth quarter. Apart from Asia, the company expects balanced growth in the fourth quarter in almost all other markets globally. It expects increased consumer demand in mainland China. We expect organic revenue growth of 2.4%, 5.4% and 7.5% respectively in the Americas, EMEA and Asia Pacific regions in the fourth quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for The Estee Lauder Companies this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
The Estee Lauder Companies has an Earnings ESP of -58.13% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Walmart Inc. (WMT - Free Report) currently has an Earnings ESP of +2.10% and a Zacks Rank #2. The company’s top line is expected to increase year over year when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for Walmart’s quarterly revenues is pegged at $159.8 billion, calling for growth of 4.6% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for the quarterly EPS is pegged at $1.69, indicating a decrease of 4.5% from the figure reported in the year-ago quarter. WMT has a trailing four-quarter earnings surprise of around 12%, on average.
Coty (COTY - Free Report) currently has an Earnings ESP of +20.00% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.3 billion, which implies a rise of 13.4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 2 cents, which indicates 300% growth from the year-ago period figure. COTY has a trailing four-quarter earnings surprise of 145%, on average.
Hormel Foods (HRL - Free Report) currently has an Earnings ESP of +3.45% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for Hormel Foods’ quarterly revenues is pegged at $3.1 billion, which implies a rise of 2.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 41 cents, which indicates a 2.5% jump from the year-ago period figure. HRL has a trailing four-quarter negative earnings surprise of 2.3%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.