Estee Lauder beats by $0.25, beats on revs; guides FY19 EPS above consensus, revs above consensus (171.81)
- Reports Q3 (Mar) earnings of $1.55 per share, excluding non-recurring items, $0.25 better than the S&P Capital IQ Consensus of $1.30; revenues rose 11.1% year/year to $3.74 bln vs the $3.56 bln S&P Capital IQ Consensus.
- Co issues upside guidance for FY19, sees EPS of $5.15-5.19, excluding non-recurring items, vs. $5.06 S&P Capital IQ Consensus; sees FY19 revs increase of 7-8% (implying $14.65-14.79 bln) vs. $14.55 bln S&P Capital IQ Consensus.
- "Company is mindful of risks related to social and political issues, including geopolitical tensions, regulatory matters, global security issues, currency volatility and economic challenges that could affect consumer spending in certain countries and travel corridors. Given this environment, the Company has reflected the following risks in its outlook:
- Continued softness of brick & mortar retail in the United States and United Kingdom is impacting overall prestige beauty growth, especially in the makeup category. The
- Company plans to invest further in the U.S. in the fourth quarter of fiscal 2019 to improve growth.
- Some costs associated with the anticipated Brexit in the United Kingdom.
- Continuation of tariffs in China and the gradual moderation of net sales growth in China and Travel Retail from recent levels. The Company has not experienced this moderation to date and continues to be optimistic about the strength of long-term growth in those areas.