Estee Lauder (EL) Stock Climbing on Earnings Beat

Estee Lauder (EL) stock is up after the company reported better than expected financial results for the fiscal 2016 first quarter.
By Amanda Schiavo ,

NEW YORK (TheStreet) -- Shares of Estee Lauder (EL) - Get Report are rising by 5.64% to $80.46 in pre-market trading on Monday morning, after the beauty products company reported better than expected financial results for the fiscal 2016 first quarter.

The maker of Clinique makeup posted earnings of 82 cents per share, topping the 70 cents per share analysts surveyed by Thomson Reuters had forecast.

Estee Lauder's net sales grew by 8% when compared to the same period last year, coming in at $2.83 billion. Analysts were looking for revenue of $2.78 billion for the three month period ended September 30.

"We began the fiscal year delivering 8% adjusted constant currency sales growth. We achieved this strong performance by leveraging our multiple engines of growth, driven by our broad portfolio of prestige brands, which diversified by category, geography and channel," company CEO Fabrizio Freda said in a statement.

"Our strong earnings per share reflected the strong sales gains and our ability to leverage those sales through cost saving initiatives and continued financial discipline," Freda continued.

Separately, TheStreet Ratings team rates LAUDER (ESTEE) COS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate LAUDER (ESTEE) COS INC (EL) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: EL

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