Anticipated Financial Update: Predictions Regarding Estée Lauder's Upcoming Earnings Report
In the upcoming Q4 2022 earnings announcement on August 20, Esteé Lauder Companies Inc. (EL) is forecasted to report a significant drop in earnings per share (EPS) compared to the same period the previous year. Analysts expect a profit of $0.07 per share, a 89.1% decrease from $0.64 per share in Q4 2021[1].
Despite this challenging outlook, EL has historically exceeded Wall Street's earnings estimates in the last four quarters[1]. This track record may offer some comfort to investors.
Regarding analyst ratings, the consensus on Wall Street has been cautious, with a "Hold" rating and a mean price target around $77.86, suggesting limited near-term upside[1]. However, some analysts are more optimistic; for example, HSBC recently upgraded the stock to a "Buy" rating with a higher price target of $99[1]. This upgrade indicates potential positive momentum for EL.
Looking further ahead, analysts projected a decline in EPS for fiscal 2025 by around 42.5% to $1.49, before expecting a rebound with a 43% growth in fiscal 2026 to about $2.13 per share[1]. This indicates that while short-term pressures were expected, longer-term recovery and growth potential remained on the radar.
EL, a global leader in prestige beauty, operates in over 150 countries and territories, targeting both high-end and emerging beauty markets[1]. The company's extensive portfolio includes skincare, makeup, fragrance, and hair care brands.
For investors, it's important to note that over the past 52 weeks, EL has fallen 10.3%. The Street-high target for Esteé Lauder is $110, implying an upswing potential of 22.7% from the current market prices[1].
It's also worth mentioning that all information and data in this article are for informational purposes only. Kritika Sarmah did not have positions in any of the securities mentioned in the article at the date of publication.
For more information, please view the article's Disclosure Policy here.
[1] Data sourced from various analyst reports and financial news outlets.
Investors might still find potential in EL, despite the predicted drop in Q4 2022 earnings, due to the company's history of exceeding Wall Street's estimates and the optimistic analyst upgrades, such as the one from HSBC. In the realm of finance, investing in EL's robust portfolio of skincare, makeup, fragrance, and hair care brands could offer opportunities for growth in the business sector, as the company targets high-end and emerging beauty markets globally.
