Estée Lauder soars on robust annual profit forecast
EL•Quarterly results and analyst commentary
Estée Lauder reported fourth-quarter net sales of $3.63 billion versus estimates of $3.54 billion. It also reported quarterly adjusted EPS of 39 cents versus expectations of 32 cents.
"We believe that the worst is in the past for EL and that a steady recovery is underway," RBC analyst Nik Modi said.
"Beauty remains a resilient sector for luxury since it is more broadly accessible and strongly tied with self-care, which is stickier for consumers even as they trade down in other areas," said Sky Canaves, analyst at eMarketer.
Year to date, as of the last close, the stock was down about 20%.
Shares jump on stronger outlook and quarterly beat
Shares of cosmetics maker Estée Lauder climbed as much as 18.45% to $99.82. The stock was set for its best day since November 2011, if gains hold, as results and forecast signaled CEO's turnaround strategy was taking root.
The company forecast annual profit largely above Wall Street estimates, betting on sustained spending on higher-end fragrances and strong performance in key markets. It expects 2027 adjusted EPS in the range of $3.10 to $3.35, the midpoint of which is above analysts' average estimate of $3.18, according to data compiled by LSEG.
