Estee Lauder (EL) Tops Q4 EPS by 8c, Guides FY and Q1 EPS Above Views

(Updated - August 18, 2017 6:55 AM EDT)

Estée Lauder (NYSE: EL) reported Q4 EPS of $0.51, $0.08 better than the analyst estimate of $0.43. Revenue for the quarter came in at $2.89 billion versus the consensus estimate of $2.85 billion.

Full Year Fiscal 2018

• Net sales are forecasted to increase between 8% and 9% versus the prior-year period.
• Foreign currency translation is expected to positively impact sales by approximately 1% versus the prior-year period.
• Net sales are forecasted to grow between 7% and 8% in constant currency.
• The Company’s fiscal 2017 acquisitions of Too Faced and BECCA are forecasted to contribute approximately 2 percentage points to the Company’s overall sales growth. These acquisitions are estimated to be accretive to earnings per share by approximately $.01.
• Reported diluted net earnings per share are projected to be between $3.60 and $3.70.
• The Company expects to take charges associated with previously approved restructuring and other activities in fiscal 2018 of approximately $135 million to $155 million, equal to $.24 to $.27 per diluted common share.
• Diluted net earnings per share before charges associated with restructuring and other activities are projected to be between $3.87 and $3.94.
• The positive currency impact on the sales growth equates to about $.09 of earnings per share. On a constant currency basis, before charges associated with restructuring and other activities, diluted earnings per share are expected to increase between 9% and 11%.

First Quarter Fiscal 2018

• Net sales are forecasted to increase between 9% and 10% versus the prior-year period both on a reported and constant currency basis.
• The Company’s fiscal 2017 acquisitions of Too Faced and BECCA are forecasted to contribute approximately 4 percentage points to the Company’s overall sales growth. These acquisitions are estimated to dilute earnings per share by approximately $.01.
• Reported diluted net earnings per share are projected to be between $.85 and $.89.
• The Company expects to take charges associated with previously approved restructuring and other activities in its fiscal 2018 first quarter of approximately $45 million to $50 million, equal to $.08 to $.09 per diluted common share.
• Diluted net earnings per share before charges associated with restructuring and other activities are projected to be between $.94 and $.97 for an increase of 12% to 15% over the prior-year period.

(Street sees Q1 EPS of 0.91 and FY EPS of $3.79)

For earnings history and earnings-related data on Estée Lauder (EL) click here.

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