Why Are Cosmetics Major Estee Lauder's Shares Diving Today?
Portfolio Pulse from Shivani Kumaresan
Estee Lauder Companies Inc (NYSE:EL) shares fell after releasing Q3 FY24 results, despite beating sales and EPS estimates. The company reported a 5% sales growth to $3.94 billion and an adjusted EPS of $0.97, surpassing consensus estimates. Sales growth was driven by strong performance in Europe, the Middle East & Africa, and Asia travel retail. However, the company revised its FY24 EPS outlook to $2.14-$2.24, slightly below consensus, and expects a 3%-2% decline in reported sales. For Q4, it anticipates adjusted EPS of $0.18-$0.28, significantly below the consensus of $0.76, with reported net sales growth of 5%-9%.
May 01, 2024 | 12:45 pm
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Estee Lauder's shares dropped after Q3 FY24 results showed a 5% sales increase and an adjusted EPS beat, but the company revised its FY24 outlook downwards and projected a lower Q4 EPS than expected.
Despite Estee Lauder beating Q3 sales and EPS estimates, the stock price fell due to a downward revision in the FY24 outlook and a significantly lower Q4 EPS forecast than analysts' expectations. This indicates investor concern over future profitability and growth, impacting the stock negatively in the short term.
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RELEVANCE 100