The Estee Lauder Companies Inc. posted its fiscal third-quarter 2022 results, with earnings topping the Zacks Consensus Estimate. Revenue, however, fell short of expectations.
The beauty and cosmetics company’s adjusted earnings for the quarter came in at $1.90 per share, exceeding the Zacks Consensus Estimate of $1.66. The bottom line rose +17% (up 18% at constant currency) year over year.
Net sales increased +10% (up +11% at cc) year-over-year to $4,245 million missed the Zacks Consensus Estimate of $4,323.1 million. Organic net sales rose +9% in the quarter. Net sales grew in every product category, on the back of continued rebound in brick-and-mortar retail stores.
The company’s revenues in the Americas climbed +15% year over year (+ 14% at cc) to $1,053 million. Sales in Europe, the Middle East & Africa region rose +17% year over year (up 19% at cc) to $1,990 million. Asia-Pacific region sales, however, fell -4% ( -3% at cc) to $1,203 million.
Management mentioned that COVID-19 pandemic continued to impact the company’s retail traffic, travel, supply chain, inventory levels and other logistics worldwide in the quarter under review.
Looking ahead, the company is expecting fiscal full year 2022 reported net sales to increase in the range of 7-9%, compared to prior forecast of 13-16% year over year. It projects organic net sales growth in the range of 5-7% year over year, vs. previous estimate of 10-13% year over year.
The company now projects adjusted earnings per share in the range of $7.05 to $7.15, compared to prior expected range of $7.43-$7.58. It now expects adjusted earnings to grow 8-10% at cc in fiscal 2022, compared to prior expectation of 14-17% at cc.
EL saw its Momentum Indicator move above the 0 level on November 20, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 89 similar instances where the indicator turned positive. In of the 89 cases, the stock moved higher in the following days. The odds of a move higher are at .
The Moving Average Convergence Divergence (MACD) for EL just turned positive on November 19, 2024. Looking at past instances where EL's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where EL advanced for three days, in of 301 cases, the price rose further within the following month. The odds of a continued upward trend are .
The RSI Oscillator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where EL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
EL broke above its upper Bollinger Band on November 22, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for EL entered a downward trend on November 19, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.542) is normal, around the industry mean (16.756). P/E Ratio (117.853) is within average values for comparable stocks, (199.024). Projected Growth (PEG Ratio) (1.715) is also within normal values, averaging (3.746). Dividend Yield (0.017) settles around the average of (0.106) among similar stocks. P/S Ratio (3.617) is also within normal values, averaging (112.094).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. EL’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. EL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a company which offers skin care, makeup, fragrance and hair care products
Industry HouseholdPersonalCare