Estee Lauder Companies (NYSE:EL) Issues Earnings Results, Beats Expectations By $0.07 EPS

Estee Lauder Companies (NYSE:EL) announced its quarterly earnings results on Wednesday. The company reported $0.39 EPS for the quarter, beating analysts’ consensus estimates of $0.32 by $0.07, Zacks reports. Estee Lauder Companies had a net margin of 1.21% and a return on equity of 23.52%. The company had revenue of $3.64 billion for the quarter, compared to analysts’ expectations of $3.55 billion. During the same period in the prior year, the company posted $0.09 EPS. Estee Lauder Companies’s revenue was up 6.3% compared to the same quarter last year. Estee Lauder Companies updated its FY 2027 guidance to 3.100-3.350 EPS.

Here are the key takeaways from Estee Lauder Companies’ conference call:

• Fiscal 2026 returned Estée Lauder to growth, with organic sales up 3%, operating margin expanding 320 basis points to 11.2%, diluted EPS rising 66% to $2.51, and operating cash flow reaching $1.8 billion.
• Growth was broad-based, led by fragrance up 10%, skincare up 4%, mainland China up 9%, and online sales up double digits; online sales reached a record 34% of reported revenue, while travel retail returned to growth late in the year.
• Management raised its fiscal 2027 adjusted operating-margin outlook to 12.7%-13.5% and expects diluted EPS of $3.10-$3.35, supported by further PRGP savings, operating leverage, modest gross-margin expansion, and continued consumer-facing investment.
• The company expects fiscal 2027 organic sales growth of 3%-5%, with stronger first-half momentum from innovation and travel retail, while prioritizing acceleration in North America, makeup, and other previously underperforming areas.
• Fiscal 2027 operating cash flow is expected to decline to $1.3-$1.4 billion because of higher restructuring payments and increased working-capital needs; management also said transformational M&A is off the table for the foreseeable future as it prioritizes deleveraging and strengthening the balance sheet.

Estee Lauder Companies Price Performance

Shares of EL stock opened at $95.98 on Friday. The company has a debt-to-equity ratio of 1.79, a quick ratio of 0.94 and a current ratio of 1.22. The business’s 50 day moving average price is $84.56 and its 200-day moving average price is $86.54. The firm has a market cap of $34.73 billion, a P/E ratio of 195.88, a P/E/G ratio of 0.77 and a beta of 1.25. Estee Lauder Companies has a fifty-two week low of $66.22 and a fifty-two week high of $121.64.

Estee Lauder Companies Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Monday, August 31st will be given a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date is Monday, August 31st. Estee Lauder Companies’s dividend payout ratio (DPR) is currently 285.71%.

Estee Lauder Companies News Summary

Here are the key news stories impacting Estee Lauder Companies this week:

• Positive Sentiment: Estee Lauder reported adjusted earnings of $0.39 per share, above the $0.32 consensus estimate, while revenue rose 6.3% year over year to $3.64 billion, surpassing expectations of $3.55 billion. Growth was supported by Skin Care and Fragrance, with sales increasing across regions. Estee Lauder Companies Shares Gap Up After Strong Earnings
• Positive Sentiment: Management maintained its fiscal 2027 organic sales-growth target of 3% to 5% and raised its adjusted operating-margin outlook to 12.7%–13.5%. The Profit Recovery and Growth Plan is reportedly delivering stronger-than-expected savings, including supply-chain changes and an expected net workforce reduction of approximately 10,000 positions. EL Q4 Earnings Call Signals Higher Margins and Broader Growth
• Positive Sentiment: Multiple analysts raised their price targets following the earnings beat. Goldman Sachs and JPMorgan increased targets to $112, Citigroup to $115, and Piper Sandler to $115; ratings included buy and overweight recommendations. These revisions reinforce expectations that the turnaround is gaining traction. Estée Lauder Analysts Boost Their Forecasts
• Neutral Sentiment: Unusually heavy options activity was reported, with investors purchasing 7,138 call options—about 46% above average daily call volume. This indicates heightened trading interest but does not confirm the direction of the stock. Estee Lauder Companies Target of Unusually Large Options Trading
• Neutral Sentiment: Estee Lauder declared a quarterly dividend of $0.35 per share, payable September 15 to shareholders of record August 31.
• Negative Sentiment: Despite the operational improvement, some analysts argue that the rally has already priced in much of the recovery. The stock’s elevated valuation and continued “hold,” “neutral,” and “equal weight” ratings could limit further upside if growth or margin gains disappoint. Estee Lauder’s Self-Help Actions Are Fully Reflected in Valuation

Analyst Upgrades and Downgrades

A number of research firms have weighed in on EL. The Goldman Sachs Group lifted their target price on Estee Lauder Companies from $100.00 to $112.00 and gave the company a “buy” rating in a report on Thursday. Zacks Research cut shares of Estee Lauder Companies from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 10th. UBS Group boosted their price target on shares of Estee Lauder Companies from $86.00 to $106.00 and gave the stock a “neutral” rating in a research note on Thursday. Piper Sandler increased their target price on Estee Lauder Companies from $95.00 to $115.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, Jefferies Financial Group increased their price objective on Estee Lauder Companies from $88.00 to $100.00 and gave the company a “hold” rating in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Estee Lauder Companies presently has a consensus rating of “Hold” and a consensus price target of $103.86.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the business. DV Equities LLC purchased a new position in shares of Estee Lauder Companies during the fourth quarter valued at approximately $36,000. Quarry LP purchased a new stake in Estee Lauder Companies during the 4th quarter valued at about $42,000. Kelleher Financial Advisors bought a new stake in Estee Lauder Companies during the 3rd quarter valued at about $39,000. Colonial Trust Co SC lifted its stake in shares of Estee Lauder Companies by 779.2% in the fourth quarter. Colonial Trust Co SC now owns 677 shares of the company’s stock worth $71,000 after buying an additional 600 shares in the last quarter. Finally, UMB Bank n.a. increased its position in shares of Estee Lauder Companies by 26.0% during the fourth quarter. UMB Bank n.a. now owns 698 shares of the company’s stock valued at $73,000 after acquiring an additional 144 shares in the last quarter. 55.15% of the stock is owned by hedge funds and other institutional investors.

Estee Lauder Companies Company Profile

Estée Lauder Companies Inc (NYSE: EL) is a global leader in prestige beauty that develops, manufactures and markets a broad portfolio of skincare, makeup, fragrance and hair care products. Founded in 1946 by Estée Lauder, the company has grown from a small family business into a multinational consumer-products enterprise headquartered in New York City. Its activities span product research and development, brand and product marketing, manufacturing and global distribution across multiple retail channels.

The company’s portfolio includes a mix of legacy and prestige brands that target different consumer segments and price points, with well-known names such as Estée Lauder, Clinique, MAC, La Mer and Jo Malone among others.