Estee Lauder Q1 Earnings Top Estimates; Q2, FY22 EPS Outlook Below Consensus
- Estee Lauder Companies Inc (NYSE: EL) reported first-quarter FY22 sales growth of 23% year-on-year, to $4.39 billion, beating the analyst consensus of $4.25 billion.
- Sales in the Americas increased 37% Y/Y, Europe, Middle East & Africa rose 22%, and Asia/Pacific gained 15%.
- Gross profit rose 22% Y/Y to $3.3 billion, with the margin contracting 90 basis points to 75.9%.
- Operating expenses increased 18% Y/Y to $2.4 billion while operating expense margin was 54.6%, versus 57% last year.
- The operating margin expanded 150 basis points to 21.3%, and operating income for the quarter rose 33% Y/Y to $935 million.
- The company held $4 billion in cash and equivalents as of September 30, 2021.
- Adjusted EPS of $1.89 beat the analyst consensus of $1.69.
- Outlook: Estee Lauder sees Q2 adjusted EPS of $2.51 - $2.61 versus the consensus of $2.81.
- It expects Q2 reported net sales to increase 11%-13% and Organic net sales to increase 8% - 10%.
- The company's FY22 adjusted EPS outlook of $7.23 - $7.38 is unchanged, coming below the consensus of $7.44.
- Estee Lauder expects FY22 net sales growth of 12% -15% (prior view 13% - 16% growth). Organic net sales to increase 9% - 12%.
- Price Action: EL shares are trading lower by 2.08% at $318.38 in premarket on the last check Tuesday.
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