Estée Lauder Companies Q2 Outlook: Adj. EPS $0.18 - $0.28 Vs. $0.75 Estimate, Revenue growth +5% - 9%
Portfolio Pulse from Benzinga Newsdesk
Estée Lauder Companies (EL) provided a Q2 outlook with adjusted EPS of $0.18 to $0.28, below the $0.75 estimate, and expects revenue growth of 5% to 9%. The company anticipates a 1% headwind from foreign currency translation and projects organic net sales growth of 6% to 10%. Reported diluted EPS is forecasted between $.11 and $.22, with adjustments for restructuring and other charges. The outlook includes potential risks from business disruptions in Israel and the Middle East, impacting earnings by $.03 per share.
May 01, 2024 | 10:52 am
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Estée Lauder's Q2 outlook indicates adjusted EPS significantly below estimates with expected revenue growth. The company faces a 1% currency headwind and anticipates organic sales growth. Potential disruptions in the Middle East could further impact earnings.
The lower than expected adjusted EPS forecast compared to estimates suggests potential short-term negative sentiment among investors. The currency headwind and geopolitical risks add to the uncertainties, likely leading to a cautious or negative outlook on the stock in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100