Stock Buy: Estee Lauder

Estee Lauder ( 64.95 0.00 0.00%) beat second-quarter consensus estimates by 4.9% and guided higher for the third quarter.

Company Description

Estee Lauder is a leading global cosmetics firm with a diversified portfolio of well-established brands including Estee Lauder, Aramis, Clinique, Bobbi Brown, and La Mer. The company is also the global licensee of Tommy Hilfiger, Donna Karan, and Sean John.

Recent Results

On Jan 28, Estee Lauder had second-quarter revenues of $2.26 billion, an increase of 11%. Reported earnings were $1.28 per share, beating the Zacks Consensus Estimate by $0.06.

Bullish Outlook

For the third quarter, EL expects revenue growth of 9% to 12% and EPS of $0.20-$0.30. The Zacks Consensus Estimates are slightly more bullish and expect Estee lauder to report EPS of $0.31. The consensus is up $0.05 in the last two months.

The company's outlook for fiscal year 2010 calls for EPS of $2.55-$2.73. Again, the analysts in the Zacks consensus are more optimistic and estimate that Estee Lauder will earn $2.77 per share. Three months ago, the consensus was $2.28 per share.

Estee Lauder is scheduled to report third-quarter results at the end of April.

 

Last Week's Growth and Income Zacks Rank Buys

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