Estée Lauder Companies Inc. (EL) is poised to release its fourth-quarter earnings results before the market opens on Monday, August 19th. Analysts are expecting the New York-based beauty giant to report earnings of 27 cents per share, a significant jump from the 7 cents per share reported in the same period last year. Revenue is projected to reach $3.83 billion, up from $3.63 billion in the prior year.
Estée Lauder’s stock closed at $94.97 on Friday, down 0.2%. As investors anticipate the earnings release, it’s crucial to consider the latest analyst opinions.
Recent analyst ratings have been mixed, with some downgrades and price target reductions.
On August 16th, B of A Securities analyst Bryan Spillane downgraded the stock from Buy to Neutral and reduced the price target from $140 to $100. Spillane, who boasts a 68% accuracy rate, cited concerns about the company’s near-term prospects.
Deutsche Bank analyst Steve Powers, also with a 68% accuracy rate, maintained a Hold rating on August 9th, but lowered the price target from $132 to $108.
Raymond James analyst Olivia Tong, known for a 69% accuracy rate, downgraded the stock from Strong Buy to Market Perform on July 22nd.
Barclays analyst Lauren Lieberman, with a 63% accuracy rate, maintained an Equal-Weight rating on July 19th, but slashed the price target from $136 to $117.
JP Morgan analyst Andrea Teixeira, who has a 62% accuracy rate, kept an Overweight rating on July 12th but reduced the price target from $145 to $129.
These diverse analyst opinions reflect the uncertainty surrounding Estée Lauder’s future performance. While the company has experienced strong growth in recent quarters, concerns remain regarding the broader economic environment and potential headwinds in the cosmetics industry.
As investors evaluate the upcoming earnings report, it will be crucial to assess the company’s strategic initiatives, market share gains, and overall financial health. The insights gleaned from the earnings call and accompanying investor presentation could offer valuable guidance on Estée Lauder’s future trajectory.
