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What's in Store for The Estee Lauder Companies' (EL) Q3 Earnings?

Zacks Equity Research
·4-min read

The Estee Lauder Companies Inc. EL is likely to register growth in the top and the bottom line when it reports third-quarter fiscal 2022 earnings on May 3. The Zacks Consensus Estimate for quarterly revenues is pegged at $4,323 million, suggesting an increase of 11.9% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for quarterly earnings has moved up 1.8% to $1.66 per share in the last seven days, projecting growth of 2.5% from the year-ago quarter’s reported figure. The manufacturer and marketer of skincare, makeup, fragrance and hair care products has a trailing four-quarter earnings surprise of 26.5%, on average. The Estee Lauder Companies delivered an earnings surprise of 14.5% in the last reported quarter.

The Estee Lauder Companies Inc. Price, Consensus and EPS Surprise

The Estee Lauder Companies Inc. Price, Consensus and EPS Surprise
The Estee Lauder Companies Inc. Price, Consensus and EPS Surprise

The Estee Lauder Companies Inc. price-consensus-eps-surprise-chart | The Estee Lauder Companies Inc. Quote

Things To Note

The Estee Lauder Companies’ Skin Care portfolio has been performing well for a while now. The company is also benefiting from growing online business. In this regard, management is implementing new technology and digital experiences, including online booking for each store appointment, omni-channel programs and high-touch services.

Management expects third-quarter fiscal 2022 net sales growth in the band of 10-12% year over year. Organic net sales growth is anticipated between 8-9% in the quarter under review. The company highlighted that net additional sales from acquisitions, divestitures and brand closures are likely to have added nearly 3 points to growth. Foreign currency translation is likely to have been an almost 1 point headwind. The company expects quarterly earnings per share (EPS) in the range of $1.55-$1.65.

Inflationary pressures across the supply chain are likely to have put pressure on the company’s cost of goods in the to-be-reported quarter. Also, the spread of the Omicron variant is likely to have dampened brick and mortar sales in the fiscal third quarter.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for The Estee Lauder Companies this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The Estee Lauder Companies currently carries a Zacks Rank #3 and has an Earnings ESP of -0.43%.

Other Stocks With Favorable Combinations

Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat.

Inter Parfums IPAR has an Earnings ESP of +11.02% and a Zacks Rank #2. The company is expected to register a bottom-line decline when it reports first-quarter 2022 results. The Zacks Consensus Estimate for Inter Parfums’ bottom line is pegged at 85 cents per share, which suggests a decline of 2.3% from the year-ago period’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

Inter Parfums is the provider of a wide range of fragrances and related products. IPAR has a trailing four-quarter earnings surprise of 46.7%, on average.

Church & Dwight Co., Inc. CHD has an Earnings ESP of +2.69% and a Zacks Rank #3. The company is expected to register top-line growth when it reports first-quarter 2022 results. The consensus mark for Church & Dwight’s revenues is pegged at $1,286 million, indicating an increase of 3.8% from the year-ago quarter’s levels.

The Zacks Consensus Estimate for Church & Dwight’s quarterly EPS of 76 cents suggests a decline of 8.4% from the year-ago quarter’s reported figure. CHD has a trailing four-quarter earnings surprise of 8.8%, on average.

Hostess Brands TWNK has an Earnings ESP of +7.76% and a Zacks Rank #3. The company is expected to register top-line growth when it reports first-quarter 2022 results. The consensus mark for Hostess Brands’ revenues is pegged at $301.6 million, indicating an increase of 13.6% from the year-ago quarter.

The Zacks Consensus Estimate for Hostess Brands’ quarterly EPS of 23 cents suggests growth of 15% from the year-ago quarter’s reported figure. TWNK has a trailing four-quarter earnings surprise of almost 6%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report

Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report

Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report

Hostess Brands (TWNK) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research