Estée Lauder (EL) 1Q19 Results: Company Beats Expectations and Raises Guidance

Executive Summary

• Estée Lauder reported fiscal 1Q19 revenues of $3.52 billion, up 7.6% year over year and higher than the consensus estimate of $3.47 billion. Adjusted earnings per share (EPS) was $1.41, higher than the consensus estimate of $1.22 and higher than the EPS of $1.21 in the year ago period.
• Comparable sales were up 11% at Estée Lauder.
• For the second quarter, the company provided EPS guidance of $1.47–$1.50, compared to the consensus estimate of $1.63. Net sales are forecast to increase 4%–5%, compared to consensus estimate of 4.6%. For the full year, Estée Lauder raised its EPS guidance to $4.73–$4.82, up from $4.62–$4.71, compared to the consensus estimate of $4.77. The company provided revenue guidance of 4.5%, implying $12.75 billion.