Beauty care products maker Estee Lauder reported its net income nearly doubled in its recently ended quarter (4Q07), as sales climbed 10% (check back later today for EL's earnings call transcript). The prior year period included significant cost-cutting and tax-related charges. By the numbers, net income was $88.6 million, good for EPS of $0.45, versus net of $44.5 million a year earlier (EPS of $0.21). Sales were up 7% to $1.76 billion, "excluding the impact of foreign currency translation," or 10% on a net basis. Consensus estimates were for EPS of $0.50 on revenue of $1.72 billion. For the company's FY2007, which ended with the most recent quarter, net sales were up 9%, to $7.04 billion. Diluted net EPS from continuing operations rose 45% to $2.16 for the full year, though the prior year included "special charges" of $0.43. CEO William P. Lauder called 2007's performance "particularly impressive in light of the substantial headwinds from retailer consolidations around the world." The company expects diluted EPS in a range of $2.28-$2.40 for FY2008; consensus estimates are for adjusted EPS of $2.49 in 2008. Shares closed lower by 2.2% Wednesday during widespread selling.
Sources: Press Release, MarketWatch, Reuters
Commentary: Five Good-Looking Cosmetic Stocks • The Calls Don't Lie: Overseas Sales Continue To Outpace U.S. Ones • Cramer's Take on EL
Stocks/ETFs to watch: EL. Competitors: AVP, REV, RDEN.
Earnings call transcripts: Estée Lauder F3Q07 (Qtr End 3/31/07)
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