Estée Lauder shares leap on strong profit forecast
By Vibhuti Sharma and Karina Dsouza - Aug 21st 2017, 14:32
Cosmetics maker Estée Lauder forecast full-year profit ahead of analysts’ estimates and posted higher than expected quarterly results, driven by strong demand for its brands such as MAC, Tom Ford, La Mer and Smashbox.
Estée Lauder’s shares rose nearly 5% to $103 before the bell on Friday.
The company said it expected full-year net sales to rise between 8% and 9%.
It also said it expected 2018 adjusted profit of $3.87 to $3.94 per share.
Analysts had estimated full-year profit to be $3.79 per share, according to Thomson Reuters.
Sales in the company’s makeup unit, which sells brands that include Tom Ford, Smashbox and La Mer, rose 16% to $1.31bn. The business accounts for more than 44% of total sales.
Net income attributable to Estée Lauder rose to $229m, or 61c per share, in the fourth quarter ended June 30, from $94m, or 25c a share, a year earlier.
Excluding items, the company earned 51c per share, beating analysts’ average estimate of 43c.
The New York City-based company’s net sales rose 9% to $2.89bn. Analysts had, on average, expected $2.85bn. © BusinessLIVE MMXVII
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