Estee Lauder Companies (NYSE:EL) Posts Earnings Results, Beats Expectations By $0.21 EPS

Estee Lauder Companies (NYSE:EL) announced its quarterly earnings data on Monday. The company reported $0.72 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.51 by $0.21, Zacks reports. Estee Lauder Companies had a net margin of 2.41% and a return on equity of 26.99%. The company had revenue of $3.72 billion during the quarter, compared to analysts’ expectations of $3.65 billion. During the same quarter in the prior year, the company earned $0.32 EPS. The firm’s revenue was up 6.7% on a year-over-year basis.

Here are the key takeaways from Estee Lauder Companies’ conference call:

• Fiscal 2027 outlook raised: Estée Lauder now expects organic sales growth of 4%–5.5%, operating margin expansion of 170–250 basis points, diluted EPS of $3.20–$3.45, and operating cash flow of $1.4–$1.5 billion.
• First-quarter organic sales increased 6%, with growth across every region and three of four categories. Fragrance was particularly strong, rising 20% on demand for Le Labo, TOM FORD, Jo Malone London, and KILIAN PARIS, while China delivered 9% growth and gained prestige beauty share for a seventh consecutive quarter.
• Profitability improved substantially, with gross margin up 240 basis points and operating margin up 480 basis points to 12.1%; diluted EPS rose 125% to $0.72. The company also reported a roughly $201 million improvement in quarterly free cash flow usage.
• Management said its Beauty Reimagined and One ELC initiatives are improving agility, reducing duplication, and funding consumer-facing investment, which increased 8% in the quarter. The acquisition of Forest Essentials further strengthens the company’s position in India’s growing prestige beauty market.
• Management expects second-half sales growth to moderate because of weaker innovation phasing and tougher travel-retail comparisons, while geopolitical uncertainty, freight inflation, and ongoing travel-retail transitions remain risks. Aveda also faced brand-specific supply-chain and logistics challenges, although the company said it is working to resolve them.

Estee Lauder Companies Stock Performance

Shares of Estee Lauder Companies stock traded up $7.24 during trading on Wednesday, hitting $112.63. 1,907,141 shares of the company’s stock traded hands, compared to its average volume of 3,800,035. Estee Lauder Companies has a 1 year low of $66.22 and a 1 year high of $121.64. The business has a 50-day simple moving average of $100.44 and a 200-day simple moving average of $91.81. The stock has a market capitalization of $40.75 billion, a P/E ratio of 112.60, a PEG ratio of 1.51 and a beta of 1.23. The company has a debt-to-equity ratio of 1.67, a current ratio of 1.25 and a quick ratio of 0.90.

Estee Lauder Companies Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Monday, November 30th will be paid a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a yield of 1.2%. The ex-dividend date is Monday, November 30th. Estee Lauder Companies’s dividend payout ratio (DPR) is currently 285.71%.

Analyst Upgrades and Downgrades

EL has been the subject of several recent analyst reports. CICC Research raised shares of Estee Lauder Companies from a “neutral” rating to an “outperform” rating and upped their price objective for the company from $65.00 to $122.00 in a research note on Monday, August 31st. Barclays raised Estee Lauder Companies from an “equal weight” rating to an “overweight” rating and raised their target price for the stock from $97.00 to $108.00 in a research note on Monday, October 5th. Zacks Research downgraded Estee Lauder Companies from a “strong-buy” rating to a “hold” rating in a report on Friday, July 10th. The Goldman Sachs Group upped their price target on Estee Lauder Companies from $116.00 to $124.00 and gave the company a “buy” rating in a research report on Friday, October 16th. Finally, Sanford C. Bernstein increased their price objective on Estee Lauder Companies from $82.00 to $106.00 and gave the stock a “market perform” rating in a report on Thursday, August 20th. Two analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $109.62.

Insider Activity at Estee Lauder Companies

In other Estee Lauder Companies news, Director Paul J. Fribourg sold 58,000 shares of the company’s stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $98.17, for a total transaction of $5,693,860.00. Following the completion of the sale, the director directly owned 417,300 shares of the company’s stock, valued at approximately $40,966,341. This represents a 12.20% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Charlene Barshefsky sold 3,775 shares of the business’s stock in a transaction that occurred on Wednesday, September 9th. The shares were sold at an average price of $98.82, for a total value of $373,045.50. Following the transaction, the director owned 50,971 shares of the company’s stock, valued at approximately $5,036,954.22. This trade represents a 6.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 75,105 shares of company stock worth $7,423,185 over the last quarter. Company insiders own 11.54% of the company’s stock.

Estee Lauder Companies News Summary

Here are the key news stories impacting Estee Lauder Companies this week:

• Positive Sentiment: Estée Lauder set a fiscal 2030 ambition for mid-single-digit annual sales growth and higher profit margins, extending its “Beauty Reimagined” strategy. The targets offer a longer-term growth plan, though execution will be important. Reuters article
• Positive Sentiment: Fiscal Q1 earnings and revenue beat consensus, with EPS of $0.72 versus $0.51 expected and revenue of $3.72 billion versus $3.65 billion. Management also raised its fiscal 2027 outlook: revenue guidance is $15.8–$16.0 billion, above the prior consensus estimate, and organic sales growth is expected at 4%–5.5%. Zacks article
• Positive Sentiment: RBC Capital reiterated a Buy view, while several other firms recently raised price targets. These updates suggest some analysts see further upside following the earnings report. RBC Capital article
• Neutral Sentiment: Analyst views remain mixed: some are positive, while others maintain neutral ratings or price targets near the recent share price. A reported surge in put-option trading may reflect increased hedging or bearish positioning, but does not establish a clear direction for the stock. Analyst sentiment article

Estee Lauder Companies Company Profile

The Estée Lauder Companies Inc (NYSE: EL) is a global prestige beauty company that develops, markets and sells skincare, makeup, fragrance and hair-care products. Its portfolio includes brands such as Estée Lauder, Clinique, M·A·C, La Mer, Jo Malone London, Aveda, Bobbi Brown Cosmetics, Tom Ford Beauty, Le Labo and The Ordinary.

Founded in 1946 by Estée and Joseph Lauder, the company began with four skincare products and has expanded into a multinational beauty business. Its products are sold through department and specialty stores, beauty retailers, brand-operated stores, e-commerce platforms, salons, spas and other distribution channels.

The Estée Lauder Companies serves consumers in markets across the Americas, Europe, the Middle East and Africa, and Asia-Pacific.