Published on 30 Jan 2023 on Zacks via Yahoo Finance

What Awaits The Estee Lauder Companies (EL) in Q2 Earnings?

The Estee Lauder Companies Inc. EL is likely to register a decline in the top and the bottom line when it reports second-quarter fiscal 2023 earnings on Feb 2, 2023. The Zacks Consensus Estimate for quarterly revenues is pegged at $4,572 million, suggesting a fall of 17.5% from the figure reported in the prior-year quarter.The Zacks Consensus Estimate for quarterly earnings has moved down by a penny to $1.29 per share in the past seven days, suggesting a decline of 57.1% from the year-ago quarter’s reported figure. This manufacturer and marketer of skincare, makeup, fragrance and hair care products has a trailing four-quarter earnings surprise of 16.6%, on average. The Estee Lauder Companies delivered an earnings surprise of 6.2% in the last reported quarter.

Things To Note

The Estee Lauder Companies has been grappling with heightened inflation and supply-chain bottlenecks. The risk of sluggishness in certain markets globally is a hurdle. In this regard, the company has been battling temporary hurdles stemming from pandemic-led curbs in China. The Estee Lauder Companies’ solid international presence keeps it exposed to unfavorable currency fluctuations.For the second quarter of fiscal 2023, management expects net sales to decline 17-19% year over year. The guidance includes the adverse impacts of the ongoing inventory tightening, currency headwinds and the termination of certain license agreements. Organic net sales are anticipated to have decreased in the range of 9-11% in the fiscal second quarter. The quarterly adjusted earnings per share (EPS) is anticipated in the band of $1.19-$1.29, indicating a 57-60% decline from the year-ago period’s levels. The adjusted EPS is likely to decline 50-54% at constant currency.