Este Lauder Updates FY20 Outlook Citing Coronavirus Impact - Quick Facts

(RTTNews) - While reporting its financial results for the second quarter on Thursday, Este Lauder Companies Inc. (EL) updated its financial outlook for fiscal 2020, saying it expects global prestige beauty to be adversely impacted over the next few months by the coronavirus.

For fiscal 2020, Este Lauder now forecasts reported net earnings per share between $4.83 and $4.95. Excluding restructuring as well as other charges and adjustments, net earnings per common share are projected to be between $5.60 and $5.70.

Excluding the $0.18 per share dilution related to the acquisition of Have & Be, full-year adjusted earnings per share on a constant currency basis are now expected to increase between 9 percent and 11 percent.

Este Lauder now projects full-year reported net sales to increase between 6 percent and 8 percent versus the prior-year period. The company's recent acquisition of Have & Be is forecast to contribute approximately 1 percent to the overall sales growth.

Excluding the impact of the acquisition and 1 percent negative impact from currency, net sales are forecast to grow between 6 percent and 8 percent.

On average, analysts polled by Thomson Reuters expect the company to report earnings per share of $5.94 for the year on revenues of $16.04 billion. Analysts' estimates typically exclude special items.

Earlier, the company forecast full-year 2020 net earnings per share between $5.85 and $5.93. On a constant currency basis, before restructuring and other charges, earnings per share were expected to increase between 10 percent and 12 percent.

The company earlier projected full-year reported net sales to increase between 7 percent and 8 percent. Excluding the currency impact, net sales were forecast to grow between 8 percent and 9 percent.

Este Lauder said it now expects to take charges associated with previously approved restructuring and other activities relating to Leading Beauty Forward of approximately $80 million to $95 million, equal to $0.19 to $0.21 per share.