Estée Lauder (EL) Fiscal 3Q18 Results: Beats Estimates and Raises Guidance

Executive Summary

• Estée Lauder reported fiscal 3Q18 adjusted EPS of $1.17, beating the consensus estimate by a dime and up 23.7% year over year. Revenues were $3.37 billion, up 18.0% year over year and beating the consensus estimate of $3.25 billion.
• Skin care was the fastest-growing segment, with revenues increasing by 31% as reported and benefiting from strength in Asia.
• The company raised its FY18 net sales growth guidance to 15%–16% (i.e., to $13.6–$13.7 billion) from 11.5%–13.5% previously. The company raised its adjusted EPS guidance to $4.38–$4.42 from $4.27–$4.32 previously.