Este Lauder Sees Q2 Adj. EPS Below Market, Backs FY22 Adj. Earnings View

(RTTNews) - While reporting higher financial results for the first quarter, Este Lauder Cos., Inc. (EL) issued second-quarter earnings forecast below market estimates. Further, the company raised fiscal 2022 reported earnings view, but backed adjusted earnings outlook, below market.

In pre-market activity on the NYSE, Este Lauder shares were losing around 2 percent to trade at $319.

For the second quarter, the company expects net earnings per share to be between $2.47 and $2.59, and adjusted earnings per share between $2.51 and $2.61.

On average, 22 analysts polled by Thomson Reuters expect earnings of $2.81 per share for the quarter. Analysts' estimates typically exclude special items.

Reported net sales are forecasted to increase between 11 percent and 13 percent, and organic net sales are forecasted to increase between 8 percent and 10 percent.

For fiscal 2022, the company now expects net earnings per share between $7.09 and $7.30, higher than previous estimate of $7.04 to $7.26. Adjusted earnings per share is still expected between $7.23 and $7.38.

Analysts expect earnings of $7.44 per share for the year.

For the year, net sales would grow between 12 percent and 15 percent on a reported basis, compared to previous estimate of net sales growth of 13 to 16 percent. The latest outlook is ahead of its long-term goal of 6 percent to 8 percent as the business begins to normalize as it recovers from the impacts of COVID-19.

Organic net sales are forecasted to increase between 9 percent and 12 percent.

Fabrizio Freda, President and Chief Executive Officer said, "For fiscal 2022, we continue to expect strong net sales and adjusted earnings per share growth with margin expansion."

Separately, Este Lauder announced a 13 percent increase in the quarterly dividend on the Company's Class A and Class B Common Stock to $.60 per share, up from the previous quarterly rate of $.53 per share.

The dividend will be payable on December 15, 2021 to stockholders of record at the close of business on November 30, 2021.