Estee Lauder Companies Inc (NYSE: EL) on Wednesday reported better-than-expected fourth-quarter financial results and issued its FY27 sales guidance with its midpoint above estimates. Adjusted earnings were 39 cents per share, beating the analyst estimate of 32 cents. The Middle East conflict reduced adjusted earnings by 5 cents per share. However, tariff refunds provided a 7-cent benefit.
Sales rose 6% year over year to $3.63 billion, beating the $3.54 billion analyst estimate. Organic net sales increased 5%.
For fiscal 2027, Estée Lauder expects adjusted earnings of $3.10 to $3.35 per share, compared with the $3.18 analyst estimate. The company affirmed its organic net sales growth outlook of 3% to 5%. It expects stronger growth in the first half, helped by earlier product launches, higher travel retail shipments and easier comparisons.
Estée Lauder projects fiscal 2027 sales of $15.50 billion to $15.80 billion, compared with the $15.56 billion analyst estimate.
"I am incredibly proud of our team for delivering fiscal 2026 results ahead of the expectations we had to start the year. We reignited growth with organic sales rising 3%, driven by the breadth of growth across brands, and achieved significant operating margin expansion," said Stéphane de La Faverie, President and CEO. "We ended the year on a high note, as organic sales growth accelerated to 5% for our fourth consecutive quarter of growth and stronger profitability. We are delivering on all aspects of Beauty Reimagined. Our One ELC operating model is increasingly enabling the entire organization to move at speed and with discipline."
Estee Lauder shares fell 0.5% to trade at $97.57 on Thursday.
These analysts made changes to their price targets on Estee Lauder following earnings announcement:
- RBC Capital analyst Nik Modi maintained the stock with an Outperform rating and raised the price target from $111 to $120.
- B. Riley Securities analyst Anna Glaessgen reiterated the stock with a Neutral and raised the price target from $85 to $100.
- TD Cowen analyst Oliver Chen maintained the stock with a Hold and boosted the price target from $90 to $100.
- Wells Fargo analyst Christopher Carey maintained the stock with an Equal-Weight rating and raised the price target from $85 to $104.
- Piper Sandler analyst Anna Andreeva maintained the stock with an Overweight rating and raised the price target from $95 to $115.