Why Cosmetics Major Estee Lauder Shares Are Rocketing Premarket Monday
Portfolio Pulse from Lekha Gupta
Estee Lauder (NYSE:EL) shares surged premarket after reporting Q2 FY24 results that exceeded expectations, with a sales decline of 7% Y/Y to $4.279 billion, surpassing analyst estimates. The company also announced a quarterly dividend of $0.66 per share and revised its FY24 outlook. Additionally, Estee Lauder is expanding its Profit Recovery Plan, aiming for significant operating profit increases by FY26.
February 05, 2024 | 1:56 pm
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POSITIVE IMPACT
Estee Lauder's Q2 FY24 results outperformed expectations with a smaller-than-anticipated sales decline and a beat on adjusted EPS. The company also declared a dividend and revised its FY24 outlook positively, alongside an expanded Profit Recovery Plan expected to significantly increase operating profits by FY26.
The positive earnings report, coupled with a dividend announcement and an optimistic outlook revision, are likely to instill investor confidence in the short term. The expansion of the Profit Recovery Plan, aiming for substantial profit increases, further bolsters the case for a positive impact on Estee Lauder's stock price.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100