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Estee Lauder (EL) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Estee Lauder (EL) reported $4.62 billion in revenue for the quarter ended December 2022, representing a year-over-year decline of 16.6%. EPS of $1.54 for the same period compares to $3.01 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $4.57 billion, representing a surprise of +1.06%. The company delivered an EPS surprise of +19.38%, with the consensus EPS estimate being $1.29.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

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Here is how Estee Lauder performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net sales-The Americas: $1.24 billion compared to the $1.21 billion average estimate based on five analysts. The reported number represents a change of -5% year over year.

  • Net sales-Europe the Middle East & Africa: $1.82 billion versus $1.82 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -22.3% change.

  • Net sales-Asia/Pacific: $1.57 billion versus $1.50 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -17.5% change.

  • Net sales-Skin Care: $2.38 billion versus $2.65 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -24.6% change.

  • Net sales-Makeup: $1.27 billion compared to the $1.21 billion average estimate based on four analysts. The reported number represents a change of -8.5% year over year.

  • Net sales-Other: $14 million versus $14.62 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -12.5% change.

  • Net sales-Hair Care: $182 million versus the four-analyst average estimate of $173.44 million. The reported number represents a year-over-year change of +1.1%.

  • Net sales-Fragrance: $775 million versus the four-analyst average estimate of $755.26 million. The reported number represents a year-over-year change of -3%.

  • Operating Income (Loss)- Skin Care: $421 million versus $748.36 million estimated by three analysts on average.

  • Operating Income (Loss)- Makeup: -$37 million versus $82.88 million estimated by three analysts on average.

  • Operating Income (Loss)- Other: -$1 million versus the three-analyst average estimate of -$372.59 million.

  • Operating Income (Loss)- Hair Care: $5 million versus $3.64 million estimated by three analysts on average.

View all Key Company Metrics for Estee Lauder here>>>

Shares of Estee Lauder have returned +7.2% over the past month versus the Zacks S&P 500 composite's +7.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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