Estée Lauder (EL) reported better-than-expected Fiscal Q4 and full-year results for the period ended June 30, 2021. The company’s growth engines of skincare, luxury, and artisanal fragrance were upbeat. Shares of the skin and hair care products company rose 2.61% to close at $327.40 on August 19.
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Net sales in Q4 increased 62% year-over-year to $3.94 billion, surpassing consensus estimates of $3.73 billion. Full-year net sales increased 13% year-over-year to $16.22 billion. The increase reflects improved foot traffic in countries where stores have re-opened and are experiencing strong growth in travel retail. (See Estée Lauder stock charts on TipRanks)
Estée Lauder bounced back to profitability posting diluted net earnings per common share of $0.78 in Q4, up from a net loss of $0.53 delivered in the same quarter last year. Additionally, it surpassed analyst estimates of $0.50 a share. Diluted earnings for the full year stood at $7.79 a share, up from $1.86 a share reported the prior year.
EL is projecting strong net sales and adjusted EPS growth in Fiscal 2022.
CEO Fabrizio Freda stated, “Our growth engines are poised to increasingly diversify as Makeup and Hair Care, developed markets in the west, and brick-and-mortar retail gradually recover and complement the strength of our existing growth engines.”
For the Fiscal Q1 of 2022, Estée Lauder estimates diluted EPS in the range of $1.55 to $1.65, below consensus estimates of $1.83 a share. Net sales are expected to increase by 17% to 19%, compared to the same quarter last year.
For the full Fiscal year 2022, EPS is expected at between $7.23 and $7.38, versus the consensus estimate of $7.14. Full-year net sales are projected to increase by 13% to 16%.
Earlier this week, RBC Capital analyst Nik Modi reiterated a Buy rating on the stock with a $348 price target, implying 6.29% upside potential to current levels.
Consensus among analysts is a Moderate Buy based on 5 Buys and 3 Holds. The average Estée Lauder price target of $341.86 implies 4.42% upside potential to current levels.
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