Estee Lauder beats by $0.08, beats on revs; guides Q3 EPS, revs above consensus; raises FY18 EPS, revs outlook
- Reports Q2 (Dec) earnings of $1.52 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $1.44; revenues rose 16.7% year/year to $3.74 bln vs the $3.68 bln Capital IQ Consensus.
- Co issues upside guidance for Q3, sees EPS of $1.02-1.04, excluding non-recurring items, vs. $0.99 Capital IQ Consensus Estimate; sees Q3 revs of $3.2-3.23 bln (+12-13%) vs. $3.12 bln Capital IQ Consensus Estimate.
- Co raises guidance for FY18, sees EPS of $4.27-4.32 (Prior $4.04-4.12), excluding non-recurring items, vs. $4.21 Capital IQ Consensus Estimate; sees FY18 revs of $13.3-13.4 bln (+12.5-13.5%, previously saw +10-11%) vs. $13.16 bln Capital IQ Consensus Estimate.
- Additional commentary on outlook:
- Global prestige beauty is vibrant and is estimated to accelerate to growth of about 5% during the year. The Company's annual growth has consistently outpaced global prestige beauty and is expected to grow more than double the industry for fiscal 2018. The Company expects its sales growth to benefit from loyalty to our high-quality products, strong innovation, outreach to new target consumers and growth from recent acquisitions, while continuing to emphasize a digital-first marketing approach and a strong focus on fast-growing markets and channels as consumer preferences evolve.
- We are mindful of risks related to social and political issues, geopolitical tensions, terrorism, currency volatility and economic challenges affecting consumer spending in certain countries and travel corridors. The Company is also cautious of the decline in retail traffic, primarily related to some brick-and-mortar stores in the United States