In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from EL and the news from its closest competitors.
Recent EPS Actuals vs. Estimates
The company has met or beaten analysts' estimates in the last 7 quarters. In the last quarter it reported $0.38 EPS, beating analyst estimates of $0.33.
The consensus EPS estimate is $0.16 based on 17 analysts' estimates, up from $0.13 a year ago. Revenue estimates are $2.21B, up from $2.06B a year ago. The median target price by analysts for the stock is $65.50.
Average recommendation: Overweight
Analyst Upgrades and Downgrades
- On March 15, 2012, Caris & Company downgraded the company from Buy to Above Average.
- On July 31, 2012, The Estee Lauder Companies Inc. announced the offering and pricing of $250 million of its 2.350% Senior Notes due 2022 and $250 million of its 3.700% Senior Notes due 2042.
- On July 19, 2012, The Estee Lauder Companies Inc. announced the appointment of Tracey T. Travis as Executive Vice President and Chief Financial Officer. She will jointly report to William P. Lauder, Executive Chairman and Fabrizio Freda, President and Chief Executive Officer.
- On May 4, 2012, The Estee Lauder Companies Inc. announced that for the fourth quarter of 2012, it expects net sales are forecasted to increase between 10% and 11% in constant currency.
Avon (AVP), Procter & Gamble (PG), Elizabeth Arden (RDEN), Revlon (REV), and Ulta Salon, Cosmetics & Fragrance (ULTA) are peers for comparison for Estee Lauder and the table below provides the key metrics for these companies and the industry.
The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.
Competitors' Latest Development
- On August 3, 2012, Procter & Gamble Co announced that net sales for fiscal 2013 are expected to be in line to down 2% versus fiscal 2012, including a negative 4% impact from foreign exchange.
- On August 1, 2012, Reuters reported that Avon Products Inc said it is in talks to settle a U.S. bribery probe into overseas operations, a step analysts said could help the troubled beauty company move past a costly distraction and focus on fixing its business.
- On July 24, 2012, Procter & Gamble Co and the U.S. Environmental Protection Agency (EPA) National Risk Management Research Laboratory (NRMRL) announced the signing of a Cooperative Research and Development Agreement (CRADA) to develop new tools to optimize sustainability improvements in manufacturing facilities, and their associated supply chains.
- On July 20, 2012, Procter & Gamble Co announced that it has filed a lawsuit against Team Technologies, Inc., a private-label manufacturer and distributor of tooth whitening products.
- On July 13, 2012, Reuters reported that activist investor William Ackman looks ready to take on management at yet another major company as he builds a stake in Procter & Gamble Co. Ackman's $10 billion Pershing Square Capital Management has been buying shares in P&G for the last few weeks and may want to increase its stake further.
- On July 10, 2012, Procter & Gamble Co announced that its Board of Directors declared a quarterly dividend of $0.562 per share on the Common Stock and on the Series A and Series B ESOP Convertible Class A Preferred Stock of the Company, payable on or after August 15, 2012 to Common Stock and Series A and Series B ESOP Convertible Class A Preferred Stock shareholders of record at the close of business on July 20, 2012.
- On June 22, 2012, Reuters reported that Revlon, Inc. has settled its dispute with shareholder Fidelity Management & Research Co regarding a class action lawsuit related to a share exchange offer from 2009.
- On June 20, 2012, Procter & Gamble Co announced that for the fourth quarter of 2012, it expects organic sales growth to be in the range of 2%-3%, compared to a prior range of 4%-5%, Foreign exchange to reduce net sales by 4%, net sales to be in the range of down 2%-1% compared to a prior range of an increase of 1%-2%.
- On June 12, 2012, Elizabeth Arden Inc announced that it has acquired the global licenses and certain related assets for the Justin Bieber and Nicki Minaj fragrance brands from Give Back Brands.
- On June 5, 2012, The Coca-Cola Company, Ford Motor Company, H.J. Heinz Company, NIKE, Inc. and Procter & Gamble announced the formation of the Plant PET Technology Collaborative (PTC), a strategic working group focused on accelerating the development and use of 100% plant-based PET materials and fiber in their products.
- On June 5, 2012, Ulta Salon Cosmetics and Fragrance Inc announced that for the second quarter of 2012, it expects net sales in the range of $466 million to $473 million and income per diluted share (EPS) to be in the range of $0.49 to $0.51. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report revenue of $467 million and EPS of $0.48 for the second quarter of 2012.
- On May 31, 2012, Elizabeth Arden Inc announced that it has acquired the global licenses and certain related assets for the Ed Hardy, True Religion and BCBGMAXAZRIA fragrance brands from New Wave Fragrances, LLC. Terms of the transaction were not disclosed.
- On May 31, 2012, Kellogg Company announced the completion of its acquisition of Procter & Gamble's Pringles business.
- On May 16, 2012, Glancy Binkow & Goldberg LLP announced that it is investigating potential claims against the Board of Directors of Avon Products, Inc. (Avon or the Company) related to their rejection of a proposal by Coty Inc. to acquire the company.
- On May 15, 2012, Coty Inc. announced that it has sent a letter to the Avon Products, Inc., Board of Directors. Since Coty reached out to Avon Products, Inc. at the beginning of March with Coty's acquisition proposal, it has been Coty's sincere hope that Coty would be able to explore together a friendly combination of the two companies that would provide premium value to Avon's stockholders and benefit its customers, representatives and associates around the world.
- On May 15, 2012, Jones Lang LaSalle announced that it is extending its global strategic alliance relationship with The Procter & Gamble Company following Procter & Gamble's competitive selection process to select a commercial facilities service partner.
- On May 14, 2012, Ulta Salon Cosmetics and Fragrance Inc announced that the underwriters of the public offering of 7,000,000 shares of its common stock held by certain entities associated with Mousse Partners have exercised in full their option to purchase an additional 1,050,000 shares from one of the selling stockholders.
- On May 10, 2012, Reuters reported that Coty Inc has raised its bid for Avon Products Inc to $24.75 per share, up $1.50, but said it would withdraw its offer if Avon did not enter into discussions by May 14, according to a letter Avon made public on May 10, 2012.
The stock has a market capitalization of $21.15B and is currently trading at $54.42 with a 52 week range of $40.76 - $65.60. The stock's year-to-date performance has been -3.10%. It is currently trading above 20 and 50 SMA, but below 200 SMA.
Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.