Estee Lauder beats by $0.30, reports revs in-line; guides Q3 EPS below consensus, revs below consensus; expands restructuring
- Reports Q2 (Dec) earnings of $0.62 per share, excluding non-recurring items, $0.30 better than the FactSet Consensus of $0.32; revenues fell 6.4% year/year to $4 bln vs the $3.98 bln FactSet Consensus.
- Co issues downside guidance for Q3, sees EPS of $0.20 to $0.30, excluding non-recurring items, vs. $0.63 FactSet Consensus; sees Q3 revs of -12 to -10% yr/yr or $3.467 bln to $3.546 bln vs. $3.67 bln FactSet Consensus.
- "Today, the Company announced it is also significantly expanding the restructuring component of the PRGP. Once fully implemented, the Company expects to take restructuring and other charges of between $1.2 billion and $1.6 billion, before taxes, consisting of employee-related costs, contract terminations, asset write-offs, and other costs associated with implementing these initiatives. The restructuring program is expected to yield annual gross benefits of between $0.8 billion and $1.0 billion, before taxes, to help restore operating margin and also fuel reinvestment in consumer facing areas to drive sustainable sales growth."