The Estee Lauder Companies Inc. Second Quarter Earnings Sneak Peek

The Cheat Sheet

S&P 500 component The Estee Lauder Companies, Inc. will unveil its latest earnings on Friday, February 3, 2012. The Estee Lauder Companies manufacture skin care, makeup, fragrance, and hair care products.

The Estee Lauder Companies, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.01 per share, a rise of 14.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 97 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.01 during the last month. For the year, analysts are projecting net income of $2.28 per share, a rise of 23.2% from last year.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at profit of 70 cents per share against a mean estimate of net income of 60 cents. The company fell in line with estimates in the fourth quarter of the last fiscal year.

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Wall St. Revenue Expectations: On average, analysts predict $2.75 billion in revenue this quarter, a rise of 10.4% from the year ago quarter. Analysts are forecasting total revenue of $9.67 billion for the year, a rise of 9.8% from last year’s revenue of $8.81 billion.

Analyst Ratings: 10 out of 17 analysts surveyed (58.8%) have a buy rating on Estee Lauder Companies.. This is below the mean analyst rating of 10 competitors, which average 61.4% buy ratings.

A Look Back: In the first quarter, profit rose 45.8% to $278.6 million (70 cents a share) from $191.1 million (48 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 18.4% to $2.48 billion from $2.09 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 14.2%, with the biggest boost coming in the most recent quarter when revenue rose 18.4% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 72% in the fourth quarter of the last fiscal year and more than twofold in the third quarter of the last fiscal year.

Competitors to Watch: Avon Products, Inc. , Alberto-Culver Company , Revlon, Inc. , Elizabeth Arden, Inc. , Inter Parfums, Inc. , Nu Skin Enterprises, Inc. , The Procter & Gamble Co. , Parlux Fragrances, Inc. , Physicians Formula Hldgs., Inc. .

Stock Price Performance: During November 1, 2011 to January 30, 2012, the stock price had risen $9.30 (19.2%) from $48.42 to $57.72. The stock price saw one of its best stretches over the last year between January 11, 2012 and January 19, 2012 when shares rose for six-straight days, rising 4.4% (+$2.47) over that span. It saw one of its worst periods between May 31, 2011 and June 8, 2011 when shares fell for seven-straight days, falling 7.1% (-$3.61) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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