Stock Market News

Estee Lauder Stock Falls 10% on Big Guidance Cut, Analyst ‘Deeply’ Surprised

2022.05.03 16:47

Estee Lauder Stock Falls 10% on Big Guidance Cut, Analyst 'Deeply' Surprised
Estee Lauder (EL) Stock Falls 10% on Big Guidance Cut, Analyst ‘Deeply’ Surprised

Shares of Estee Lauder (NYSE:EL) are down more than 9% after the company cut its guidance for the full year.

EL reported EPS of $1.90 per share to easily top the $1.67 per share expected. Revenue came in at $4.25 billion to miss on the $4.32 billion consensus, driven by the underperformance in the regions of Americas and the Asia Pacific.

“In the Asia/Pacific region, several markets prospered, led by Japan while our China results were pressured by COVID restrictions,” the management commented.

EL stock was especially hit after it slashed guidance to now expect adjusted EPS between $7.05 and $7.15, which compares to the prior guidance of $7.43 to $7.58, and lower than the estimate of $7.57.

The company is now calling for sales to come in between +7% to +9% vs +13% to +16% earlier.

“Given our outstanding performance year-to-date, we expect to deliver a record year in fiscal 2022 despite temporary COVID-driven headwinds that reduced our fourth quarter outlook. We are confident that our business in China will rebound when COVID abates and accelerate our momentum.”

Barclays analyst Lauren Lieberman is “deeply” surprised by the big guidance cut.

“To be sure, with a major distribution center in Shanghai, we probably should have been braced for more short-term pressure on the business but even still, the implied magnitude of organic sales declines in F4Q (expected to be down -10-18% by our math) is striking,”

“While others may well have been better prepared for today’s release, we don’t expect anyone will have expected a shock to EPS of this degree,” she added.

Stifel analyst Mark Astrachan said the results were “worse-than-feared.”

“We anticipate EL shares to meaningfully underperform, partly reflecting weak F3Q22 sales relative to peers and limited visibility on timing of improvement in China,” he told clients.

By Senad Karaahmetovic

 

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 98,520.40 4.64%
ethereum
Ethereum (ETH) $ 3,504.87 2.70%
tether
Tether (USDT) $ 1.00 0.36%
xrp
XRP (XRP) $ 2.31 2.77%
bnb
BNB (BNB) $ 706.12 2.19%
solana
Solana (SOL) $ 200.32 4.92%
dogecoin
Dogecoin (DOGE) $ 0.334897 3.88%
usd-coin
USDC (USDC) $ 1.00 0.26%
staked-ether
Lido Staked Ether (STETH) $ 3,498.63 2.69%
cardano
Cardano (ADA) $ 0.930471 2.70%
tron
TRON (TRX) $ 0.257951 2.40%
avalanche-2
Avalanche (AVAX) $ 41.44 6.71%
chainlink
Chainlink (LINK) $ 25.02 3.66%
the-open-network
Toncoin (TON) $ 5.85 4.11%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,145.86 2.53%
shiba-inu
Shiba Inu (SHIB) $ 0.000023 3.67%
sui
Sui (SUI) $ 4.61 1.25%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 98,155.30 4.47%
hedera-hashgraph
Hedera (HBAR) $ 0.31216 4.71%
stellar
Stellar (XLM) $ 0.390444 5.21%
polkadot
Polkadot (DOT) $ 7.49 3.45%
hyperliquid
Hyperliquid (HYPE) $ 29.70 0.25%
weth
WETH (WETH) $ 3,499.68 2.64%
bitcoin-cash
Bitcoin Cash (BCH) $ 466.70 1.98%
leo-token
LEO Token (LEO) $ 9.54 1.59%
uniswap
Uniswap (UNI) $ 14.27 1.76%
litecoin
Litecoin (LTC) $ 109.35 3.12%
pepe
Pepe (PEPE) $ 0.000019 4.12%
bitget-token
Bitget Token (BGB) $ 5.29 16.43%
near
NEAR Protocol (NEAR) $ 5.59 2.47%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,689.43 2.48%
ethena-usde
Ethena USDe (USDE) $ 0.999501 0.13%
aave
Aave (AAVE) $ 379.65 0.30%
internet-computer
Internet Computer (ICP) $ 11.52 7.58%
aptos
Aptos (APT) $ 9.86 3.82%
usds
USDS (USDS) $ 0.999263 0.08%
crypto-com-chain
Cronos (CRO) $ 0.162228 0.74%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.523178 3.20%
vechain
VeChain (VET) $ 0.052663 9.31%
mantle
Mantle (MNT) $ 1.24 3.16%
ethereum-classic
Ethereum Classic (ETC) $ 27.76 2.13%
render-token
Render (RENDER) $ 7.81 0.68%
bittensor
Bittensor (TAO) $ 507.69 2.68%
monero
Monero (XMR) $ 196.61 5.01%
mantra-dao
MANTRA (OM) $ 3.80 0.82%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.38 1.53%
whitebit
WhiteBIT Coin (WBT) $ 24.91 2.23%
arbitrum
Arbitrum (ARB) $ 0.813492 1.48%
dai
Dai (DAI) $ 1.00 0.18%
filecoin
Filecoin (FIL) $ 5.41 5.14%