Estee Lauder Companies (NYSE:EL) Shares Gap Up After Earnings Beat

The Estee Lauder Companies Inc. (NYSE:EL)’s stock price gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $76.71, but opened at $86.00. Estee Lauder Companies shares last traded at $81.4630, with a volume of 1,593,512 shares changing hands.

The company reported $0.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.66 by $0.25. The firm had revenue of $3.71 billion during the quarter, compared to analysts’ expectations of $3.69 billion. Estee Lauder Companies had a negative net margin of 1.21% and a positive return on equity of 17.59%. The firm’s revenue for the quarter was up 4.6% on a year-over-year basis. During the same period in the prior year, the company posted $0.65 earnings per share. Estee Lauder Companies has set its FY 2026 guidance at 2.330-2.430 EPS.

Estee Lauder Companies Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, March 16th. Investors of record on Friday, February 27th were issued a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend was Friday, February 27th. Estee Lauder Companies’s dividend payout ratio is currently -280.00%.

Analyst Upgrades and Downgrades

EL has been the subject of several analyst reports. Citigroup cut their price target on shares of Estee Lauder Companies from $120.00 to $92.00 and set a “buy” rating for the company in a report on Wednesday, April 15th. Royal Bank Of Canada reissued an “outperform” rating and set a $113.00 price target on shares of Estee Lauder Companies in a report on Tuesday, February 3rd. Zacks Research cut shares of Estee Lauder Companies from a “strong-buy” rating to a “hold” rating in a report on Monday, February 9th. TD Cowen dropped their target price on shares of Estee Lauder Companies from $130.00 to $115.00 and set a “hold” rating for the company in a report on Monday, February 9th. Finally, HSBC cut shares of Estee Lauder Companies from a “buy” rating to a “hold” rating and set a $106.00 target price for the company. in a report on Tuesday, February 10th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Estee Lauder Companies currently has an average rating of “Hold” and a consensus price target of $97.95.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Candriam S.C.A. increased its stake in shares of Estee Lauder Companies by 225.8% during the 1st quarter. Candriam S.C.A. now owns 301,032 shares of the company’s stock worth $21,605,000 after purchasing an additional 208,628 shares in the last quarter. Sequoia Financial Advisors LLC increased its stake in shares of Estee Lauder Companies by 24.6% during the 1st quarter. Sequoia Financial Advisors LLC now owns 7,963 shares of the company’s stock worth $572,000 after purchasing an additional 1,570 shares in the last quarter. Waterfront Wealth Inc. increased its stake in shares of Estee Lauder Companies by 6.2% during the 1st quarter. Waterfront Wealth Inc. now owns 19,011 shares of the company’s stock worth $1,364,000 after purchasing an additional 1,109 shares in the last quarter. Kestra Advisory Services LLC increased its stake in shares of Estee Lauder Companies by 3.1% during the 1st quarter. Kestra Advisory Services LLC now owns 4,520 shares of the company’s stock worth $324,000 after purchasing an additional 134 shares in the last quarter. Finally, Resona Asset Management Co. Ltd. boosted its position in Estee Lauder Companies by 7.0% during the first quarter. Resona Asset Management Co. Ltd. now owns 76,968 shares of the company’s stock worth $5,469,000 after acquiring an additional 5,060 shares during the last quarter. 55.15% of the stock is owned by hedge funds and other institutional investors.

Estee Lauder Companies Stock Performance

The stock’s 50-day moving average is $83.69 and its 200-day moving average is $96.43. The stock has a market cap of $29.50 billion, a price-to-earnings ratio of -163.76, a price-to-earnings-growth ratio of 0.88 and a beta of 1.26. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.36 and a quick ratio of 1.00.

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.