NEW YORK (TheStreet) -- Estee Lauder (EL) - Get Estee Lauder Companies Inc. (The) Report is scheduled to release its fiscal 2016 first quarter earnings results before the market open on Monday morning.
Analysts are expecting the beauty products producer to post a year over year rise in both earnings per share and revenue for the most recent quarter.
The company has been forecast by analysts surveyed by Thomson Reuters to report earnings of 70 cents per share on revenue of $2.78 billion for the September ended period.
Estee Lauder's earnings came in at 59 cents per diluted share on net sales of $2.63 billion for the fiscal 2015 first quarter.
Estee Lauder is a New York City-based retailer of beauty products. The company's brands include Estee Lauder, Clinique, Donna Karen New York, Aveda, MAC, Le Labo and Smashbox.
Shares of Estee Lauder closed lower by 1.21% to $82.24 on Thursday afternoon.
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.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The current debt-to-equity ratio, 0.45, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.26, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 52.62% to $558.30 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 36.72%.
- The gross profit margin for LAUDER (ESTEE) COS INC is currently very high, coming in at 85.09%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, EL's net profit margin of 6.06% significantly trails the industry average.
- LAUDER (ESTEE) COS INC's earnings per share declined by 39.4% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, LAUDER (ESTEE) COS INC reported lower earnings of $2.83 versus $3.05 in the prior year. This year, the market expects an improvement in earnings ($3.16 versus $2.83).
- EL, with its decline in revenue, slightly underperformed the industry average of 2.0%. Since the same quarter one year prior, revenues slightly dropped by 7.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: EL