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.
International Markets and Estee Lauder (EL): A Deep Dive for Investors
Read MoreHide Full Article
Have you evaluated the performance of Estee Lauder's (EL - Free Report) international operations for the quarter ending June 2024? Given the extensive global presence of this beauty products company, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
Our review of EL's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
The recent quarter saw the company's total revenue reaching $3.87 billion, marking an improvement of 7.3% from the prior-year quarter. Next, we'll examine the breakdown of EL's revenue from abroad to comprehend the significance of its international presence.
A Look into EL's International Revenue Streams
Asia/Pacific generated $1.21 billion in revenues for the company in the last quarter, constituting 31.1% of the total. This represented a surprise of -8.14% compared to the $1.31 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Asia/Pacific accounted for $1.18 billion (29.9%), and in the year-ago quarter, it contributed $1.3 billion (36.1%) to the total revenue.
Europe the Middle East & Africa accounted for 42.7% of the company's total revenue during the quarter, translating to $1.65 billion. Revenues from this region represented a surprise of +14.61%, with Wall Street analysts collectively expecting $1.44 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe the Middle East & Africa contributed $1.65 billion (41.8%) and $1.25 billion (34.7%) to the total revenue, respectively.
Revenue Forecasts for the International Markets
The current fiscal quarter's total revenue for Estee Lauder, as projected by Wall Street analysts, is expected to reach $3.38 billion, reflecting a decline of 4.1% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Asia/Pacific is anticipated to contribute 33.9% or $1.14 billion and Europe the Middle East & Africa 42.4% or $1.43 billion.
For the full year, the company is projected to achieve a total revenue of $15.68 billion, which signifies a rise of 0.5% from the last year. The share of this revenue from various regions is expected to be: Asia/Pacific at 34.1% ($5.35 billion) and Europe the Middle East & Africa at 41.5% ($6.51 billion).
In Conclusion
Relying on international markets for revenues, Estee Lauder faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.
In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
The stock has declined by 7% over the past month compared to the 1.5% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Consumer Staples sector, which includes Estee Lauder, has increased 5.2% during this time frame. Over the past three months, the company's shares have experienced a loss of 24% relative to the S&P 500's 7.2% increase. Throughout this period, the sector overall has witnessed a 4.2% increase.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
International Markets and Estee Lauder (EL): A Deep Dive for Investors
Have you evaluated the performance of Estee Lauder's (EL - Free Report) international operations for the quarter ending June 2024? Given the extensive global presence of this beauty products company, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
Our review of EL's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
The recent quarter saw the company's total revenue reaching $3.87 billion, marking an improvement of 7.3% from the prior-year quarter. Next, we'll examine the breakdown of EL's revenue from abroad to comprehend the significance of its international presence.
A Look into EL's International Revenue Streams
Asia/Pacific generated $1.21 billion in revenues for the company in the last quarter, constituting 31.1% of the total. This represented a surprise of -8.14% compared to the $1.31 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Asia/Pacific accounted for $1.18 billion (29.9%), and in the year-ago quarter, it contributed $1.3 billion (36.1%) to the total revenue.
Europe the Middle East & Africa accounted for 42.7% of the company's total revenue during the quarter, translating to $1.65 billion. Revenues from this region represented a surprise of +14.61%, with Wall Street analysts collectively expecting $1.44 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe the Middle East & Africa contributed $1.65 billion (41.8%) and $1.25 billion (34.7%) to the total revenue, respectively.
Revenue Forecasts for the International Markets
The current fiscal quarter's total revenue for Estee Lauder, as projected by Wall Street analysts, is expected to reach $3.38 billion, reflecting a decline of 4.1% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Asia/Pacific is anticipated to contribute 33.9% or $1.14 billion and Europe the Middle East & Africa 42.4% or $1.43 billion.For the full year, the company is projected to achieve a total revenue of $15.68 billion, which signifies a rise of 0.5% from the last year. The share of this revenue from various regions is expected to be: Asia/Pacific at 34.1% ($5.35 billion) and Europe the Middle East & Africa at 41.5% ($6.51 billion).
In Conclusion
Relying on international markets for revenues, Estee Lauder faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
Estee Lauder currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Reviewing Estee Lauder's Recent Stock Price Trends
The stock has declined by 7% over the past month compared to the 1.5% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Consumer Staples sector, which includes Estee Lauder, has increased 5.2% during this time frame. Over the past three months, the company's shares have experienced a loss of 24% relative to the S&P 500's 7.2% increase. Throughout this period, the sector overall has witnessed a 4.2% increase.