Estée Lauder (EL) 3Q16 Results: EMEA Region Leads Performance in the Quarter

Executive Summary

• Estée Lauder reported 3Q16 adjusted EPS of $0.73, excluding onetime items and including a $0.03 negative impact related to foreign exchange, versus the consensus estimate of $0.61.
• Total revenues were $2.66 billion, in line with expectations. Total sales increased by 6% on a constant-currency basis versus consensus of 7.1%; on a reported basis, sales increased by 3%.
• Full-year guidance calls for EPS of $3.09–$3.14, which is above prior guidance of $3.07–$3.12. Guidance for sales growth of 7%–8% on a constant-currency basis is consistent with prior guidance.