Estee Lauder (EL) shares are rising 8.5% this morning after the company beat fiscal fourth quarter earnings and revenue expectations and said that sales have been strong in China and other emerging economies, as well as in the U.S.
The owner of Clinique and other skincare and makeup brands posted 17 cents of core EPS, a penny ahead of expectations. Revenue of $2.25 billion beat expectations for $2.21 billion.� Operating income jumped 35% in Asia and 18% in the Americas. Total operating margin rose 1.2 percentage points year over year.
“Despite pockets of economic uncertainty around the globe, our sales growth was broad-based, with strong gains in every geographic region and product category and many distribution channels,” said CEO Fabirizio Freda in a statement.
Still, the company is seeing weakness in certain parts of the world, and its 2013 EPS guidance fell below analysts’ expectations. Estee Lauder forecast core EPS of $2.44 to $2.56, below expectations for $2.57. The company projected net sales to grow 6% to 8%, versus analysts’ expectations for 6% growth. Said the company:
“While the Company�s business is performing well, certain Western European countries, Korea and Australia are seeing increased weakness due to ongoing economic uncertainties and volatility in financial markets.
Separately, the Company is also cautious of macroeconomic factors that may temper the growth trend of the Chinese economy.”
Competitor Revlon (REV) is down 0.5%. Avon Products (AVP) rose 1.3%.
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