Estee Lauder Plans Buyback

It pays $750 million to snap up 16 million shares.
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Estee Lauder (EL) - Get Report set plans for a $750 million accelerated buyback.

The New York-based cosmetics giant said it expects fiscal third-quarter earnings to be flat compared with last year. Analysts surveyed by Thomson Financial were expecting the company to make 46 cents a share, up from 44 cents a year ago.

Estee Lauder said sales should rise 4%-6% from a year ago, shy of the 6.8% Thomson analysts' consensus.

The company said it expects to make $2.10 to $2.20 a share for the year, against a $2.23 Wall Street estimate.

Estee Lauder said it will pay Bank of America $750 million to buy back 16 million shares immediately, using cash on hand and borrowings.