Estee Lauder Reports Q2 Results Monday

| About: The Estée (EL)

The Estee Lauder Companies Inc. (EL) trades an average of 1.38 million shares per day, has a market cap of $17.90 billion, and is a component of the S&P 500 (NYSEARCA:SPY). Estee Lauder engages in the manufacture, marketing, and sale of skin care, makeup, fragrance, and hair care products worldwide. The company was founded in 1946, and is based in New York, New York.

On average, 17 analysts are expecting $0.24 per share, a drop of $-0.47 in earnings per share compared with last quarter's results of $0.71. Analyst estimates range between $0.20 and $0.34 per share. Don't be surprised if estimates get revised upward between now and Monday.

Time Released: Before Opening Bell
Recent Price: $91.19
52-Week High: $108.77
52-Week Low: $54.61
Book Value: $12.73

After Ralph Lauren (NYSE:RL) beat estimates on Wednesday, many investors will be looking for Estee Lauder to beat as well. This was witnessed in the price moving higher despite the overall sell-off in the market. Now, it would appear that the table is set for a must beat for Estee Lauder or the shares may come under pressure. Even a modest beat without the help of the overall market moving higher, may get priced in by the release of earnings.

Investors have been rewarded with an increase of year-over-year revenue. Revenue reported was $7.80 billion for 2010 vs. $7.32 billion for 2009. The bottom line has rising earnings year-over-year of $478.3 million for 2010 vs. $218.40 million for 2009. The company's earnings before income and taxes are rising with an EBIT year-over-year of $789.90 million for 2010 vs. $418.40 million for 2009.

The annual growth rate of revenue is 6.56%.

(Click charts to enlarge)

Gross reported revenue compared with the mean estimate (rounded).

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Mar-11 $ 2.05 B $ 2.17 B $ 113.98 M 5.55%
Dec-10 $ 2.43 B $ 2.49 B $ 65.36 M 2.69%
Sep-10 $ 2.02 B $ 2.09 B $ 66.96 M 3.31%
Jun-10 $ 1.83 B $ 1.84 B $ 12.52 M 0.68%
Mar-10 $ 1.88 B $ 1.86 B $ -16.53 M -0.88%

M = millions, B = billions

Reported earnings per share compared with the mean estimate. Differences are rounded.

Fiscal Quarter Ending Month-Year Estimate Actual Difference Difference %
Mar-11 0.57 0.71 0.14 24.56%
Dec-10 1.44 1.77 0.33 22.92%
Sep-10 0.77 0.97 0.2 25.97%
Jun-10 0.30 0.29 -0.01 -3.33%
Mar-10 0.32 0.34 0.02 6.25%

(Some onetime items are often excluded in reported EPS)

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in EL over the next 72 hours.