Analysts Raise Full-Year EPS Forecasts 6% After Estee Lauder Q2 Beat
Estee Lauder reported stronger-than-expected Q2 results, driven by broad-based demand across its prestige beauty portfolio, prompting analysts to raise full-year EPS forecasts by an average 6%. Shares nonetheless dropped over 5% in the session following the earnings release.
1. Q2 Earnings Beat
Estee Lauder delivered better-than-anticipated fiscal Q2 results, with revenue driven by strong growth in skincare and makeup across North America, Europe and Asia-Pacific, reflecting broad-based consumer demand in its prestige beauty segment.
2. Analyst Forecast Revisions
Following the release, major brokerage firms increased full-year EPS projections by an average of 6%, citing sustainable margin improvement and accelerating sales in high-growth categories such as serums and premium cosmetics.
3. Stock Price Reaction
Despite the bullish analyst revisions, Estee Lauder shares declined more than 5% on the day as investors weighed one-time currency headwinds and tempered expectations for near-term organic sales growth.