These Analysts Slash Their Forecasts On Estee Lauder Following Q4 Results

Author: Avi Kapoor | August 20, 2024 08:02am

Estee Lauder Companies Inc (NYSE:EL) reported upbeat fourth-quarter results, but issued worse-than-expected FY25 EPS outlook on Monday.

The company reported sales growth of 7% Y/Y to $3.87 billion, beating the analyst consensus estimate of $3.83 billion. Estee Lauder’s operating loss was $233 million, compared to a $5 million loss last year. Adjusted EPS of 64 cents beat the analyst consensus estimate of 27 cents.

Estée Lauder announced that President and CEO Fabrizio Freda will retire at the end of FY25. The company said its Board is well advanced in its CEO succession planning process, considering internal and external candidates.

Estee Lauder expects an FY25 adjusted EPS outlook of $2.75-$2.95 (vs. consensus of $4.02) and organic & reported revenue growth (1)% to 2%. For the first quarter, Estee Lauder expects adjusted EPS of 2 cents to 10 cents (vs. the consensus of 66 cents) and organic and reported net sales growth of (5)% – (3)%.

Fabrizio Freda, President and CEO, said, "For fiscal 2025, we anticipate continued declines in the prestige beauty segment in China, mainly reflecting persistent weak sentiment among Chinese consumers."

Estee Lauder shares fell 2.3% to close at $92.85 on Monday.

These analysts made changes to their price targets on Estee Lauder following earnings announcement.

• Deutsche Bank analyst Steve Powers maintained Estee Lauder with a Hold and lowered the price target from $108 to $105.
• DA Davidson analyst Linda Bolton Weiser maintained the stock with a Buy and slashed the price target from $191 to $130..
• Telsey Advisory Group analyst Dana Telsey maintained Estee Lauder with a Market Perform and lowered the price target from $115 to $105.
• Stifel analyst Mark Astrachan maintained the stock with a Buy and lowered the price target from $165 to $125.

Considering buying EL stock? Here’s what analysts think:

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