Estee Lauder Q1 Tops Street on EPS and Revenue; Guides Q2 EPS Below Street

Estee Lauder (EL), a beauty product manufacturer, reported fiscal Q1 adjusted earnings of $1.47 per share, up from $1.21 in the same period a year ago and topping the estimate of $1.23 from analysts polled by CapIQ.

For the quarter ended Sept. 30 total revenue of $3.52 billion was up from $3.27 billion in the same period a year ago and topped the Street projection of $3.48 billion.

For Q2 the company expects adjusted EPS between $1.47 and $1.50, short of the Street estimate of $1.63. The company expects Q2 revenue to increase between 4% and 5% versus the prior year period when the company reported $3.74 billion in revenue. The guidance implies a range of $3.89 billion to $3.93 billion, straddling the Street projection of $3.92 billion.

For the full year the company increased adjusted EPS guidance to a range of $4.73 and $4.82 from a prior range of $4.62 to $4.71. The new guidance straddles the Street estimate of $4.75. The company continues to expect revenue to increase in the range of 4% to 5% from 2017 when the company posted $13.68 billion in revenue. The guidance implies a range of $14.23 billion to $14.36 billion, straddling the Street estimate of $14.31 billion.

Estee Lauder also increased its quarterly dividend 13% to $.43 per share from $.38 per share. The dividend is payable Dec. 17 to stockholders as of Nov. 30. The company’s board authorized the repurchase of up to another 40 million shares of common stock, increasing its total authorization to 256 million shares, of which approximately 212 million have been repurchased to date.