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EL Gears Up for Upcoming Q2 Earnings: Here's What You Should Know
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The Estee Lauder Companies Inc. (EL - Free Report) is likely to register a decline in its top and bottom lines when it reports second-quarter fiscal 2025 earnings on Feb. 4. The Zacks Consensus Estimate for net sales is pegged at almost $4 billion, suggesting a decrease of 6.9% from the prior-year quarter's level.
The consensus mark for fiscal second-quarter earnings has remained unchanged in the past 30 days at 32 cents per share, indicating a decline of 63.6% from the figure reported in the year-ago quarter. EL has a trailing four-quarter earnings surprise of 93.4%, on average.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Things to Know About EL’s Upcoming Results
The Estee Lauder Companies is navigating a challenging market environment, with persistent weaknesses in Mainland China and global travel retail. A decline in consumer sentiment in China is contributing to a slowdown in the prestige beauty sector and lower conversion rates across these markets.
On its last earnings call, management highlighted that it expects significant headwinds in retail across China and Asia travel retail, as the company does not anticipate any immediate benefit from new economic stimulus measures in China. For the fiscal second quarter, The Estee Lauder Companies anticipates a reported organic net sales decline of 6-8% compared to the previous quarter’s level, along with adjusted earnings per share (EPS) decline of 60-77%, ranging from 20 to 35 cents. Our model suggests a 7% organic net sales decline in the to-be-reported quarter.
The Estee Lauder Companies Inc. Price and EPS Surprise
Despite these challenges, The Estee Lauder Companies is benefiting from its Profit Recovery and Growth Plan, which focuses on three main areas: accelerating margin expansion, fueling growth through targeted investments and simplifying processes to enhance agility. The company’s expanded presence in high-growth digital channels is also a positive factor. In addition, EL is well-positioned in emerging markets, where demand is steadily increasing.
Earnings Whispers for EL Stock
Our proven model predicts 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 odds of an earnings beat, which is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Estee Lauder Companies carries a Zacks Rank #3 and has an Earnings ESP of +1.33%.
Other Stocks With the Favorable Combination
Here are some other companies worth considering, as our model shows that these also have the right combination of elements to beat on earnings this reporting cycle.
Church & Dwight (CHD - Free Report) currently has an Earnings ESP of +0.11% and a Zacks Rank of 3. The Zacks Consensus Estimate for Church & Dwight’s fourth-quarter 2024 revenues is pegged at $1.56 billion, which indicates growth of 2.3% 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 quarterly EPS is pegged at 77 cents, which implies a roughly 18.5% increase year over year. CHD has a trailing four-quarter earnings surprise of roughly 10%, on average.
Clorox (CLX - Free Report) currently has an Earnings ESP of +0.78% and a Zacks Rank of 3. The company is likely to register a decline in its top and bottom lines when it reports second-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.63 billion, which suggests a decrease of 17.8% from the prior-year quarter.
The Zacks Consensus Estimate for Clorox’s quarterly earnings per share is pegged at $1.39, indicating a 35.7% decline from the year-ago period. CLX has a trailing four-quarter earnings surprise of 45.9%, on average.
Kenvue Inc. (KVUE - Free Report) currently has an Earnings ESP of +1.45% and a Zacks Rank of 3. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.78 billion, which indicates growth of 2.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Kenvue’s fourth-quarter 2024 EPS is pegged at 25 cents, which implies a 19.4% decrease year over year. KVUE has a trailing four-quarter earnings surprise of 10.2%, on average.
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EL Gears Up for Upcoming Q2 Earnings: Here's What You Should Know
The Estee Lauder Companies Inc. (EL - Free Report) is likely to register a decline in its top and bottom lines when it reports second-quarter fiscal 2025 earnings on Feb. 4. The Zacks Consensus Estimate for net sales is pegged at almost $4 billion, suggesting a decrease of 6.9% from the prior-year quarter's level.
The consensus mark for fiscal second-quarter earnings has remained unchanged in the past 30 days at 32 cents per share, indicating a decline of 63.6% from the figure reported in the year-ago quarter. EL has a trailing four-quarter earnings surprise of 93.4%, on average.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Things to Know About EL’s Upcoming Results
The Estee Lauder Companies is navigating a challenging market environment, with persistent weaknesses in Mainland China and global travel retail. A decline in consumer sentiment in China is contributing to a slowdown in the prestige beauty sector and lower conversion rates across these markets.
On its last earnings call, management highlighted that it expects significant headwinds in retail across China and Asia travel retail, as the company does not anticipate any immediate benefit from new economic stimulus measures in China. For the fiscal second quarter, The Estee Lauder Companies anticipates a reported organic net sales decline of 6-8% compared to the previous quarter’s level, along with adjusted earnings per share (EPS) decline of 60-77%, ranging from 20 to 35 cents. Our model suggests a 7% organic net sales decline in the to-be-reported quarter.
The Estee Lauder Companies Inc. Price and EPS Surprise
The Estee Lauder Companies Inc. price-eps-surprise | The Estee Lauder Companies Inc. Quote
Despite these challenges, The Estee Lauder Companies is benefiting from its Profit Recovery and Growth Plan, which focuses on three main areas: accelerating margin expansion, fueling growth through targeted investments and simplifying processes to enhance agility. The company’s expanded presence in high-growth digital channels is also a positive factor. In addition, EL is well-positioned in emerging markets, where demand is steadily increasing.
Earnings Whispers for EL Stock
Our proven model predicts 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 odds of an earnings beat, which is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Estee Lauder Companies carries a Zacks Rank #3 and has an Earnings ESP of +1.33%.
Other Stocks With the Favorable Combination
Here are some other companies worth considering, as our model shows that these also have the right combination of elements to beat on earnings this reporting cycle.
Church & Dwight (CHD - Free Report) currently has an Earnings ESP of +0.11% and a Zacks Rank of 3. The Zacks Consensus Estimate for Church & Dwight’s fourth-quarter 2024 revenues is pegged at $1.56 billion, which indicates growth of 2.3% 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 quarterly EPS is pegged at 77 cents, which implies a roughly 18.5% increase year over year. CHD has a trailing four-quarter earnings surprise of roughly 10%, on average.
Clorox (CLX - Free Report) currently has an Earnings ESP of +0.78% and a Zacks Rank of 3. The company is likely to register a decline in its top and bottom lines when it reports second-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.63 billion, which suggests a decrease of 17.8% from the prior-year quarter.
The Zacks Consensus Estimate for Clorox’s quarterly earnings per share is pegged at $1.39, indicating a 35.7% decline from the year-ago period. CLX has a trailing four-quarter earnings surprise of 45.9%, on average.
Kenvue Inc. (KVUE - Free Report) currently has an Earnings ESP of +1.45% and a Zacks Rank of 3. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.78 billion, which indicates growth of 2.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Kenvue’s fourth-quarter 2024 EPS is pegged at 25 cents, which implies a 19.4% decrease year over year. KVUE has a trailing four-quarter earnings surprise of 10.2%, on average.