Estee Lauder Companies Inc (NYSE:EL) stock shot up in premarket trade Wednesday, after the cosmetics and fragrance company reported fiscal first-quarter earnings that handily beat Wall Street estimates and boosted its dividend and share repurchase program.
For the quarter ended September 2018, the maker of Aveda and Smashbox reported fiscal first quarter earnings of $1.41 per share on revenue of $3.5 billion. The New York cosmetics giant topped consensus earnings estimate of $1.22 per share on revenue of $3.5 billion. Revenue grew 7.6% on a year-over-year basis.
“Our top growth drivers were skin care globally, the Asia/Pacific region and emerging markets, the global online and travel retail channels, and most brands, including Estée Lauder, M•A•C, La Mer, Tom Ford and Origins. In addition, in the United States, excluding Bon-Ton closures, our performance among department stores turned positive,” said Estee Lauder CEO Fabrizio Freda.
“We are operating in a challenging macro environment with many economic and geopolitical risks, but we are confident in the strength of our business strategy, the quality of our products, the desirability of our brands and our ability to execute with discipline and agility. With our strong first-quarter results and exciting upcoming launches and programs, we are raising our EPS guidance for the year,” added Freda.
READ: Estee Lauder shares shine after it raises 2018 adjusted profit guidance as second quarter beats market hopes
The company said it expects fiscal second quarter earnings of $1.47 to $1.50 per share on revenue of $3.89 billion to $3.93 billion. The current consensus earnings estimate is $1.62 per share on revenue of $3.92 billion for the quarter ending December 31, 2018.
Estée Lauder also said it now expects earnings for its fiscal year of $4.73 to $4.82 per share on revenue of $14.23 billion to $14.37 billion, excluding restructuring and other charges, above its prior forecast of $4.62 to $4.71. Analysts on average had estimated earnings of $4.73 per share on revenue of $14.31 billion for the year ending June 30, 2019.
Shares of Estee Lauder shot up 4.6% to $137.30 after the sales beat and positive profit forecast.
Contact Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive