Estee Lauder beats by $0.05, misses on revs; guides Q3 EPS, revs below consensus; lowers FY17 EPS, revs guidance
- Reports Q2 (Dec) earnings of $1.22 per share, $0.05 better than the Capital IQ Consensus of $1.17; revenues rose 2.7% year/year to $3.21 bln vs the $3.24 bln Capital IQ Consensus.
- Co issues downside guidance for Q3, sees EPS of $0.65-0.70 vs. $0.84 Capital IQ Consensus Estimate; sees Q3 revs of ~$2.79-2.82 bln (+5-6%) vs. $2.9 bln Capital IQ Consensus Estimate.
- Co lowers guidance for FY17, sees EPS of $3.29-3.33 (Prior $3.38-3.44) vs. $3.39 Capital IQ Consensus Estimate; sees FY17 revs of ~$11.71-11.83 bln (+4-5%) (Prior +6-7%) vs. $11.88 bln Capital IQ Consensus Estimate. Foreign currency translation is expected to negatively impact sales by approximately 2% versus the prior-year period (Previously expected foreign currency translation to negatively impact sales by less than 1% versus the prior-year period)
- The Company expects to take charges associated with previously approved restructuring and other activities in fiscal 2017 of approximately $110 million to $130 million, equal to $.19 to $.22 per diluted common share.
- "We expect sales and profit growth to further accelerate in the second half of our fiscal year, due largely to strong product innovation, increased consumer coverage and improving trends in certain brands and markets. We plan to make targeted investments throughout the balance of the fiscal year to support and grow our brands. With our plans in place, we expect 2017 fiscal year constant currency sales growth of 6% to 7%, which includes approximately 1% of incremental sales attributable to the recent acquisition of Too Faced. We now expect constant currency earnings per share growth of 8% to 9%, before charges, which reflects $.04 of dilution related to Too Faced."