Estee Lauder Companies (NYSE:EL) Posts Quarterly Earnings Results, Beats Estimates By $0.21 EPS

Estee Lauder Companies (NYSE:EL) posted its earnings results on Monday. The company reported $0.72 EPS for the quarter, topping analysts’ consensus estimates of $0.51 by $0.21, Zacks reports. The business had revenue of $3.72 billion during the quarter, compared to the consensus estimate of $3.65 billion. Estee Lauder Companies had a net margin of 1.21% and a return on equity of 23.52%. The firm’s revenue was up 6.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.32 EPS.

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

• Fiscal 2027 outlook raised: Estée Lauder now expects organic sales growth of 4%–5.5%, operating margin expansion of 170–250 basis points, diluted EPS of $3.20–$3.45, and operating cash flow of $1.4–$1.5 billion.
• First-quarter organic sales increased 6%, with growth across every region and three of four categories. Fragrance was particularly strong, rising 20% on demand for Le Labo, TOM FORD, Jo Malone London, and KILIAN PARIS, while China delivered 9% growth and gained prestige beauty share for a seventh consecutive quarter.
• Profitability improved substantially, with gross margin up 240 basis points and operating margin up 480 basis points to 12.1%; diluted EPS rose 125% to $0.72. The company also reported a roughly $201 million improvement in quarterly free cash flow usage.
• Management said its Beauty Reimagined and One ELC initiatives are improving agility, reducing duplication, and funding consumer-facing investment, which increased 8% in the quarter. The acquisition of Forest Essentials further strengthens the company’s position in India’s growing prestige beauty market.
• Management expects second-half sales growth to moderate because of weaker innovation phasing and tougher travel-retail comparisons, while geopolitical uncertainty, freight inflation, and ongoing travel-retail transitions remain risks. Aveda also faced brand-specific supply-chain and logistics challenges, although the company said it is working to resolve them.

Estee Lauder Companies Stock Down 4.3%

Shares of EL opened at $104.55 on Tuesday. The firm has a fifty day moving average price of $100.42 and a 200-day moving average price of $91.86. The company has a current ratio of 1.22, a quick ratio of 0.90 and a debt-to-equity ratio of 1.79. The firm has a market capitalization of $37.83 billion, a P/E ratio of 43.55, a P/E/G ratio of 1.59 and a beta of 1.27. Estee Lauder Companies has a 12-month low of $66.22 and a 12-month high of $121.64.

Estee Lauder Companies Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Monday, November 30th will be paid a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend is Monday, November 30th. Estee Lauder Companies’s dividend payout ratio (DPR) is currently 285.71%.

Insiders Place Their Bets

In other news, Director Charlene Barshefsky sold 3,775 shares of the company’s stock in a transaction that occurred on Wednesday, September 9th. The shares were sold at an average price of $98.82, for a total value of $373,045.50. Following the completion of the sale, the director owned 50,971 shares of the company’s stock, valued at approximately $5,036,954.22. This represents a 6.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Rashida La Lande sold 7,766 shares of the stock in a transaction on Friday, August 28th. The shares were sold at an average price of $103.32, for a total value of $802,383.12. Following the sale, the vice president directly owned 14,357 shares in the company, valued at $1,483,365.24. This trade represents a 35.10% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 75,105 shares of company stock worth $7,423,185 in the last three months. Corporate insiders own 11.54% of the company’s stock.

Estee Lauder Companies News Summary

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

• Positive Sentiment: Fiscal first-quarter adjusted earnings per share rose to $0.72 from $0.32 a year earlier, exceeding the roughly $0.51–$0.52 analyst consensus. Revenue increased 6.7% to $3.72 billion, ahead of the $3.65 billion estimate. The Estée Lauder Companies Announces Rise in Q1 Profit
• Positive Sentiment: Management raised its fiscal 2027 outlook to 4%–5.5% organic sales growth, citing stronger demand and progress under its “Beauty Reimagined” strategy. Estée Lauder Raises Fiscal 2027 Outlook
• Positive Sentiment: Fragrance was the key growth driver, with sales rising approximately 19%–20% across major price tiers. China also showed improvement, while better cost control helped operating income more than double and expanded margins. Estée Lauder Q1 Earnings Beat on Fragrance Growth
• Neutral Sentiment: The company declared a quarterly dividend of $0.35 per share, or $1.40 annualized, representing a yield of approximately 1.3%. Estée Lauder Dividend Information
• Negative Sentiment: Management expects growth to be front-loaded, and the full-year organic growth forecast is below the quarter’s approximately 6% pace. Makeup and hair-care categories were nearly flat, leaving investors dependent on continued fragrance momentum and broader turnaround execution. Estée Lauder Margin Gains Drive Profit Jump

Analysts Set New Price Targets

Several research analysts have recently commented on the company. Weiss Ratings raised Estee Lauder Companies from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Tuesday, October 27th. HSBC boosted their price target on Estee Lauder Companies from $87.00 to $95.00 and gave the stock a “hold” rating in a report on Thursday, August 20th. Wall Street Zen downgraded Estee Lauder Companies from a “buy” rating to a “hold” rating in a research note on Saturday, September 26th. Argus increased their price objective on shares of Estee Lauder Companies from $100.00 to $125.00 and gave the company a “buy” rating in a report on Friday, August 28th. Finally, Royal Bank Of Canada reiterated an “outperform” rating and set a $111.00 price objective on shares of Estee Lauder Companies in a research report on Monday, August 17th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Estee Lauder Companies has a consensus rating of “Moderate Buy” and an average price target of $106.92.

Estee Lauder Companies Company Profile

The Estée Lauder Companies Inc (NYSE: EL) is a global prestige beauty company that develops, markets and sells skincare, makeup, fragrance and hair-care products. Its portfolio includes brands such as Estée Lauder, Clinique, M·A·C, La Mer, Jo Malone London, Aveda, Bobbi Brown Cosmetics, Tom Ford Beauty, Le Labo and The Ordinary.

Founded in 1946 by Estée and Joseph Lauder, the company began with four skincare products and has expanded into a multinational beauty business. Its products are sold through department and specialty stores, beauty retailers, brand-operated stores, e-commerce platforms, salons, spas and other distribution channels.

The Estée Lauder Companies serves consumers in markets across the Americas, Europe, the Middle East and Africa, and Asia-Pacific.