Estee Lauder Q1 Earnings Top Estimates; Q2, FY22 EPS Outlook Below Consensus

Estee Lauder Companies Inc EL reported first-quarter FY22 sales growth of 23% year-on-year, to $4.39 billion, beating the analyst consensus of $4.25 billion.
Sales in the Americas increased 37% Y/Y, Europe, Middle East & Africa rose 22%, and Asia/Pacific gained 15%.
Gross profit rose 22% Y/Y to $3.3 billion, with the margin contracting 90 basis points to 75.9%.
Operating expenses increased 18% Y/Y to $2.4 billion while operating expense margin was 54.6%, versus 57% last year.
The operating margin expanded 150 basis points to 21.3%, and operating income for the quarter rose 33% Y/Y to $935 million.
The company held $4 billion in cash and equivalents as of September 30, 2021.
Adjusted EPS of $1.89 beat the analyst consensus of $1.69.
Outlook: Estee Lauder sees Q2 adjusted EPS of $2.51 - $2.61 versus the consensus of $2.81.
It expects Q2 reported net sales to increase 11%-13% and Organic net sales to increase 8% - 10%.
The company's FY22 adjusted EPS outlook of $7.23 - $7.38 is unchanged, coming below the consensus of $7.44.
Estee Lauder expects FY22 net sales growth of 12% -15% (prior view 13% - 16% growth). Organic net sales to increase 9% - 12%.
Price Action: EL shares are trading lower by 2.08% at $318.38 in premarket on the last check Tuesday.

Overview Rating:

Speculative

0100

Earnings Calendar