Estee Lauder beats by $0.12, beats on revs; guides Q2 EPS below consensus; reaffirms FY16 guidance
- Reports Q1 (Sep) earnings of $0.82 per share, $0.12 better than the Capital IQ Consensus of $0.70; revenues rose 7.7% year/year to $2.83 bln vs the $2.78 bln Capital IQ Consensus.
- Adjusting for the impact of the accelerated orders, net sales and diluted earnings per common share in constant currency for the quarter ended September 30, 2015 would have increased 8% and 16%, respectively.
- Co issues downside guidance for Q2, sees EPS of $1.04-1.08 vs. $1.20 Capital IQ Consensus Estimate.
- Net sales are forecasted to increase between 6% and 7% in constant currency. Reflecting the strength of the U.S. dollar, foreign currency translation is expected to negatively impact sales by ~5% to 6% versus the prior-year period. The acquisitions the Company made beginning in the second quarter of fiscal 2015 are forecast to contribute ~70 basis points to the Company's overall sales growth in its fiscal 2016 second quarter. Acquisitions are estimated to dilute earnings per share by ~$.01.
- Co reaffirms guidance for FY16, sees EPS of $3.10-3.17 vs. $3.17 Capital IQ Consensus Estimate.
- Net sales are forecasted to grow between 8% and 10% in constant currency. Reflecting the strength of the U.S. dollar, foreign currency translation is expected to negatively impact sales by ~4% to 5% versus the prior-year period. The accelerated retailer orders will affect the comparison between the fiscal 2016 and fiscal 2015 full year sales by ~2%. Net sales adjusting for the effect of the accelerated retailer orders are forecasted to grow between 6% and 8% in constant currency.