Estee Lauder Companies (NYSE:EL) Announces Quarterly Earnings Results

Estee Lauder Companies (NYSE:EL) issued its earnings results on Wednesday. The company reported $0.39 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.07, Zacks reports. The company had revenue of $3.64 billion for the quarter, compared to analyst estimates of $3.55 billion. Estee Lauder Companies had a positive return on equity of 20.66% and a negative net margin of 1.67%.The business’s revenue was up 6.3% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.09 EPS. Estee Lauder Companies updated its FY 2027 guidance to 3.100-3.350 EPS.

Here are the key takeaways from Estee Lauder Companies’ conference call:

• Fiscal 2026 returned Estée Lauder to growth, with organic sales up 3%, operating margin expanding 320 basis points to 11.2%, diluted EPS rising 66% to $2.51, and operating cash flow reaching $1.8 billion.
• Growth was broad-based, led by fragrance up 10%, skincare up 4%, mainland China up 9%, and online sales up double digits; online sales reached a record 34% of reported revenue, while travel retail returned to growth late in the year.
• Management raised its fiscal 2027 adjusted operating-margin outlook to 12.7%-13.5% and expects diluted EPS of $3.10-$3.35, supported by further PRGP savings, operating leverage, modest gross-margin expansion, and continued consumer-facing investment.
• The company expects fiscal 2027 organic sales growth of 3%-5%, with stronger first-half momentum from innovation and travel retail, while prioritizing acceleration in North America, makeup, and other previously underperforming areas.
• Fiscal 2027 operating cash flow is expected to decline to $1.3-$1.4 billion because of higher restructuring payments and increased working-capital needs; management also said transformational M&A is off the table for the foreseeable future as it prioritizes deleveraging and strengthening the balance sheet.

Estee Lauder Companies Stock Performance

NYSE EL opened at $98.10 on Thursday. The stock has a market cap of $35.49 billion, a P/E ratio of -140.15, a PEG ratio of 0.66 and a beta of 1.25. The company’s 50-day simple moving average is $84.40 and its 200 day simple moving average is $86.67. Estee Lauder Companies has a twelve month low of $66.22 and a twelve month high of $121.64. The company has a quick ratio of 0.94, a current ratio of 1.27 and a debt-to-equity ratio of 1.71.

Estee Lauder Companies Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Monday, August 31st will be given a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a dividend yield of 1.4%. The ex-dividend date is Monday, August 31st. Estee Lauder Companies’s payout ratio is -200.00%.

Institutional Investors Weigh In On Estee Lauder Companies

A number of institutional investors have recently added to or reduced their stakes in the stock. DV Equities LLC bought a new stake in shares of Estee Lauder Companies in the 4th quarter valued at approximately $36,000. Kelleher Financial Advisors bought a new position in shares of Estee Lauder Companies during the 3rd quarter worth approximately $39,000. Quarry LP bought a new position in shares of Estee Lauder Companies during the 4th quarter worth approximately $42,000. Colonial Trust Co SC boosted its stake in Estee Lauder Companies by 779.2% in the 4th quarter. Colonial Trust Co SC now owns 677 shares of the company’s stock valued at $71,000 after buying an additional 600 shares in the last quarter. Finally, UMB Bank n.a. boosted its stake in Estee Lauder Companies by 26.0% in the 4th quarter. UMB Bank n.a. now owns 698 shares of the company’s stock valued at $73,000 after buying an additional 144 shares in the last quarter. 55.15% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Estee Lauder Companies

Here are the key news stories impacting Estee Lauder Companies this week:

• Positive Sentiment: Fiscal fourth-quarter revenue rose 6.3% year over year to $3.64 billion, exceeding the $3.55 billion analyst consensus. Adjusted earnings reached $0.39 per share versus expectations of $0.32 and $0.09 a year earlier. Growth was supported by Skin Care and Fragrance, with all geographic regions contributing. Estee Lauder Q4 Earnings Beat Estimates, Sales Up 6% Y/Y
• Positive Sentiment: Management affirmed fiscal 2027 organic sales growth of 3% to 5% and raised its adjusted operating-margin outlook to 12.7%–13.5%. The company also said its restructuring program is outperforming expectations, with benefits at the high end of its prior target and an expected net workforce reduction of approximately 10,000 positions. Estée Lauder Surges After Earnings Beat and Margin Outlook Increase
• Positive Sentiment: Chief Executive Officer Stéphane de La Faverie said the company has “great momentum” and is expanding margins. Stronger demand in China and continued spending on premium fragrances further encouraged investors about the recovery. Estee Lauder forecasts annual profit above estimates on strong China demand
• Neutral Sentiment: Estée Lauder declared a quarterly dividend of $0.35 per share, payable September 15 to shareholders of record August 31. The dividend provides ongoing shareholder income but was not the primary driver of the market reaction.
• Neutral Sentiment: Unusually heavy options activity accompanied the rally, with investors purchasing 7,138 call options, roughly 46% above typical volume. This indicates increased bullish speculation but does not change the company’s fundamentals.
• Negative Sentiment: After the move, valuation may become a near-term concern: the reported median analyst price target is $90, below the stock’s cited $98.10 opening level. The company also continues to report a negative net margin, underscoring execution risk despite the improving outlook.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on EL. UBS Group raised their price objective on shares of Estee Lauder Companies from $85.00 to $86.00 and gave the company a “neutral” rating in a research report on Thursday, July 16th. Jefferies Financial Group boosted their target price on shares of Estee Lauder Companies from $80.00 to $88.00 and gave the stock a “hold” rating in a research report on Tuesday, July 28th. JPMorgan Chase & Co. lowered their target price on shares of Estee Lauder Companies from $99.00 to $94.00 and set an “overweight” rating on the stock in a research report on Thursday, July 16th. TD Cowen lifted their price target on shares of Estee Lauder Companies from $85.00 to $90.00 and gave the company a “hold” rating in a research report on Tuesday, July 21st. Finally, The Goldman Sachs Group started coverage on Estee Lauder Companies in a research note on Monday, June 22nd. They issued a “buy” rating and a $100.00 price objective on the stock. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Estee Lauder Companies has a consensus rating of “Hold” and an average target price of $96.84.

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.