Estee Lauder (EL) - Get Free Report was rising Thursday after the beauty products company's quarterly earnings beat analysts top- and bottom-line estimates and even though it trimmed its full-year outlook due to the coronavirus outbreak.
The New York-based company reported fiscal second-quarter adjusted earnings of $2.11 a share on revenue that rose 15% year over year to $4.62 billion. Analysts were expecting the company to report earnings of $1.29 a share on revenue of $4.35 billion.
“Our multiple engines of growth generated broad-based gains across all our regions and major categories, as our prestige brand portfolio was well received by global consumers during the Singles Day event and holiday season,” said CEO Fabrizio Freda.
However, the company did reduce its full-year earnings outlook to between $5.60 and $5.70 a share from its previous estimate of between $5.85 and $5.93 because of the coronavirus in China.
“The global situation will also affect our financial results in the near term, so we are updating our fiscal-year outlook,” Freda said. “We will be ready to return to our growth momentum as the global coronavirus outbreak is resolved."
The company also recorded an impairment charge of $1.81 a share on three make-up brands: Too Faced, Becca and Smashbox, due to what the company said was weakness in the makeup category in North America.
Estee Lauder has been one of the stronger stocks over the past 12 months, climbing more than 30%.
The stock rose 5.29% to $211.97 in premarket trading Thursday.