What Awaits The Estee Lauder Companies (EL) in Q1 Earnings?
The Estee Lauder Companies Inc. EL is likely to register a top- and bottom-line decline when it reports first-quarter fiscal 2024 earnings on Nov 1.
The Zacks Consensus Estimate for revenues is pegged at $3.5 billion, suggesting a decrease of 10.5% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has deteriorated by a penny to a loss of 22 cents per share in the last seven days. The projection indicates a significant decline against earnings of $1.37 per share reported in the year-ago period. The cosmetics giant has a trailing four-quarter earnings surprise of 74.1%, on average.
Things To Note
The Estee Lauder Companies has been grappling with several macro-economic challenges, including volatile inflation levels. The company is witnessing economic hurdles in China. Concerns surrounding recession across several global markets are a threat. The persistence of these factors is likely to have hurt EL’s performance in the first quarter of fiscal 2024.
Apart from this, The Estee Lauder Companies’ international presence keeps it exposed to unfavorable foreign currency translation risks. We expect a 0.6% headwind from unfavorable currency rates on the top-line during the fiscal first quarter.
For the first quarter of fiscal 2024, management anticipates reported and organic net sales decline of 12-10% year over year. Our model suggests an organic net sales decline of 10.2%. The bottom line is envisioned in the band of a loss of 31 cents per share and a loss of 21 cents in the to-be-reported quarter. On a constant-currency basis, the quarterly loss is likely to have come 29 cents and 19 cents per share.
Nevertheless, The Estee Lauder Companies has been benefiting from its strong online business. The company has a strong presence in emerging markets, which insulates it from the macroeconomic headwinds in the matured markets.
What the Zacks Model Unveils
Our proven model does not predict an earnings beat for The Estee Lauder Companies this time. 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 carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -1.50%.
Stocks With the Favorable Combination
Here are three companies worth considering, as our model shows that these have the correct combination to beat on earnings this time:
Church & Dwight Co. CHD has an Earnings ESP of +2.21% and a Zacks Rank #3. The company is slated to witness top-line growth when it reports third-quarter 2023 results. The Zacks Consensus Estimate for CHD’s quarterly revenues is pegged at $1.43 billion, suggesting growth of 8.7% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Although the Zacks Consensus Estimate for Church & Dwight’s quarterly earnings has moved up by a penny in the past 30 days to 68 cents per share, it projects a decline of 10.5% from the year-ago quarter’s reported number. CHD has delivered an earnings surprise of 12.1%, on average, in the trailing four quarters.
The Boston Beer Company SAM has an Earnings ESP of +0.17% and has a Zacks Rank #3. The company is likely to register bottom-line growth when it reports third-quarter 2023 numbers. The Zacks Consensus Estimate for The Boston Beer Company’s quarterly earnings per share of $4.25 suggests an increase of 11.3% from the year-ago quarter’s levels.
SAM has a trailing four-quarter negative earnings surprise of 74.9% on average. The Zacks Consensus Estimate for The Boston Beer Company’s quarterly revenues is pegged at $592.9 million, indicating a drop of 0.6% from the figure reported in the prior-year quarter.
Colgate-Palmolive Company CL has an Earnings ESP of +0.37% and a Zacks Rank of 3. The company is likely to register increases in the top and the bottom line when it reports third-quarter 2023 results. The Zacks Consensus Estimate for Colgate-Palmolive’s quarterly revenues is pegged at $4.8 billion, suggesting growth of 8.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 80 cents per share, which indicates 8.1% growth from the year-ago quarter's reported number. CL delivered an earnings surprise of 1.7%, on average, in the trailing four quarters.
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Colgate-Palmolive Company (CL) : Free Stock Analysis Report
The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report
Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report
The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report
