Analysts Update Projections for Estée Lauder Post Q4 Report
Estée Lauder's Q4 Earnings Overview
Estée Lauder Companies, Inc. (NYSE: EL) announced their fourth-quarter earnings, meeting analysts' expectations with adjusted earnings per share of 9 cents. The company reported quarterly sales of $3.41 billion, which, although a decline of 12% year-over-year, surpassed the analyst consensus of $3.397 billion.
Forecasting Challenges Ahead
Going forward, Estée Lauder foresees potential challenges related to tariffs that might affect profitability by about $100 million in fiscal 2026. The CEO, Stéphane de La Faverie, expressed optimism, highlighting a return to organic sales growth after three years of decline and efforts to stabilize operating profitability.
Future Earnings Projections
The projections for fiscal 2026 look promising, with EPS estimated between $1.90 and $2.10, significantly above the analyst consensus of $1.48. Sales expectations range from $14.613 billion to $15.042 billion, exceeding the forecast of $14.321 billion.
Stock Market Response
Following the earnings announcement, Estée Lauder shares increased by 1.7%, trading at approximately $88.08. This reaction reflects investor confidence in the company's recovery plan and future outlook.
Analysts' Pricing Adjustments
In light of the recent earnings results, several analysts have revised their price targets for Estée Lauder's stock. RBC Capital's Nik Modi has maintained an Outperform rating, raising the price target from $90 to $107. In contrast, JP Morgan's Andrea Teixeira continues to hold an Overweight rating but has decreased the price target from $101 to $99.
Should You Consider Investing in EL?
With the adjusted price targets and a positive outlook on sales growth, analysts are weighing the potential advantages of investing in Estée Lauder stock. The market's response reflects a belief in the brand's ability to navigate through challenging economic conditions.
Frequently Asked Questions
What were Estée Lauder's earnings for Q4?
Estée Lauder reported adjusted earnings per share of 9 cents for Q4.
How much did Estée Lauder earn in quarterly sales?
The company generated quarterly sales of $3.41 billion.
What challenges does Estée Lauder face for fiscal 2026?
Estée Lauder anticipates tariff-related headwinds affecting profitability by approximately $100 million.
What do analysts expect for earnings per share in 2026?
Analysts forecast EPS for fiscal 2026 to be between $1.90 and $2.10.
How did the market react to Estée Lauder's earnings report?
Estée Lauder shares rose by 1.7%, closing at around $88.08.
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