Estée Lauder (EL) Q2 Earnings Report Preview: What To Look For

Anthony Lee /
2024/02/04 2:01 am EST

Beauty products company Estée Lauder (NYSE:EL) will be reporting results. Here's what you need to know.

Last quarter Estée Lauder reported revenues of $3.52 billion, down 10.6% year on year, missing analyst expectations by 0.9%. It was a slower quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts' organic revenue growth estimates.

Is Estée Lauder buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Estée Lauder's revenue to decline 8.2% year on year to $4.24 billion, improvement on the 16.6% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.56 per share.

Estée Lauder Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing five upward and three downward revisions over the last thirty days. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Estée Lauder's peers in the consumer staples segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Post delivered top-line growth of 25.5% year on year, beating analyst estimates by 2.4% and Lamb Weston reported revenues up 35.7% year on year, exceeding estimates by 1.9%. Post traded up 4.8% on the results, Lamb Weston was down 1.4%.

Read our full analysis of Post's results here and Lamb Weston's results here.

Investors in the consumer staples segment have had steady hands going into the earnings, with the stocks down on average 0.4% over the last month. Estée Lauder is down 2% during the same time, and is heading into the earnings with analyst price target of $145.4, compared to share price of $136.3.

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The author has no position in any of the stocks mentioned.