Estee Lauder (EL) Misses Q4 EPS by 34c, Offers Q1 Outlook

Estee Lauder (NYSE: EL) reported Q4 EPS of ($0.53), $0.34 worse than the analyst estimate of ($0.19). Revenue for the quarter came in at $2.43 billion versus the consensus estimate of $2.45 billion.

GUIDANCE:

Estee Lauder sees Q1 2021 EPS of $0.80-$0.85, versus the consensus of $1.22.

Sales Outlook

• Reported net sales are forecasted to decline between 12% and 13% versus the prior-year period.
• The Company’s recent acquisition of Dr. Jart+ is forecasted to contribute approximately 2.5% to the Company’s overall sales growth.
• Excluding the impact of the acquisition and 1% negative impact from currency, net sales are forecasted to decrease between 14% and 15%.

Earnings per Share Outlook

• Reported diluted net earnings per common share are projected to be between $.77 and $.83. Excluding restructuring and other charges and adjustments, diluted net earnings per common share are projected to be between $.80 and $.85.
• Excluding the $.06 per share dilution related to the acquisition, adjusted diluted earnings per common share are expected to decrease between 45% and 48% on a constant currency basis.
• Currency exchange rates are volatile and difficult to predict. Using June 30, 2020 spot rates for fiscal 2021, the negative currency impact equates to about $.01 of diluted loss per share.
• The Company expects to take charges associated with previously approved restructuring and other activities. For Leading Beauty Forward, the charges are estimated to be between approximately $10 million to $15 million, equal to $.02 to $.03 per diluted common share. The first quarter fiscal 2021 forecast does not include charges related to the Post-COVID Business Acceleration Program

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

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