Estee Lauder Companies (NYSE:EL) Shares Gap Up on Earnings Beat

The Estee Lauder Companies Inc. (NYSE:EL) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $76.71, but opened at $86.00. Estee Lauder Companies shares last traded at $81.4630, with a volume of 1,593,512 shares changing hands.

The company reported $0.91 earnings per share for the quarter, beating the consensus estimate of $0.66 by $0.25. The business had revenue of $3.71 billion for the quarter, compared to analyst estimates of $3.69 billion. Estee Lauder Companies had a negative net margin of 1.21% and a positive return on equity of 17.59%. The business’s quarterly revenue was up 4.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.65 EPS. Estee Lauder Companies has set its FY 2026 guidance at 2.330-2.430 EPS.

Estee Lauder Companies Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, March 16th. Investors of record on Friday, February 27th were paid a dividend of $0.35 per share. The ex-dividend date of this dividend was Friday, February 27th. This represents a $1.40 annualized dividend and a yield of 1.7%. Estee Lauder Companies’s payout ratio is -280.00%.

Analysts Set New Price Targets

EL has been the topic of several analyst reports. Raymond James Financial raised shares of Estee Lauder Companies from a “market perform” rating to a “strong-buy” rating and set a $130.00 price target on the stock in a research note on Monday, January 5th. Deutsche Bank Aktiengesellschaft dropped their price target on shares of Estee Lauder Companies from $124.00 to $108.00 and set a “buy” rating on the stock in a research note on Monday, March 30th. TD Cowen dropped their price target on shares of Estee Lauder Companies from $130.00 to $115.00 and set a “hold” rating on the stock in a research note on Monday, February 9th. HSBC downgraded shares of Estee Lauder Companies from a “buy” rating to a “hold” rating and set a $106.00 price target on the stock. in a research note on Tuesday, February 10th. Finally, Wall Street Zen downgraded shares of Estee Lauder Companies from a “buy” rating to a “hold” rating in a research note on Saturday, April 4th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $97.95.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. REAP Financial Group LLC acquired a new position in shares of Estee Lauder Companies in the 4th quarter valued at about $27,000. Investors Towarzystwo Funduszy Inwestycyjnych Spolka Akcyjna acquired a new position in shares of Estee Lauder Companies in the 4th quarter valued at about $27,000. Flagship Harbor Advisors LLC acquired a new position in Estee Lauder Companies during the 4th quarter valued at about $32,000. N.E.W. Advisory Services LLC boosted its stake in Estee Lauder Companies by 39.1% during the 4th quarter. N.E.W. Advisory Services LLC now owns 324 shares of the company’s stock valued at $34,000 after purchasing an additional 91 shares during the period. Finally, DV Equities LLC acquired a new position in Estee Lauder Companies during the 4th quarter valued at about $36,000. 55.15% of the stock is owned by institutional investors and hedge funds.

Estee Lauder Companies Price Performance

The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.00 and a current ratio of 1.36. The business’s 50 day simple moving average is $83.69 and its 200-day simple moving average is $96.43. The stock has a market capitalization of $29.50 billion, a price-to-earnings ratio of -163.76, a price-to-earnings-growth ratio of 0.88 and a beta of 1.26.

About Estee Lauder Companies

Estée Lauder Companies Inc (NYSE: EL) is a global leader in prestige beauty that develops, manufactures and markets a broad portfolio of skincare, makeup, fragrance and hair care products. Founded in 1946 by Estée Lauder, the company has grown from a small family business into a multinational consumer-products enterprise headquartered in New York City. Its activities span product research and development, brand and product marketing, manufacturing and global distribution across multiple retail channels.

The company’s portfolio includes a mix of legacy and prestige brands that target different consumer segments and price points, with well-known names such as Estée Lauder, Clinique, MAC, La Mer and Jo Malone among others.