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

The Estee Lauder Companies Inc. (NYSE:EL)’s stock price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $84.27, but opened at $93.74. Estee Lauder Companies shares last traded at $98.6150, with a volume of 3,336,708 shares changing hands.

The company reported $0.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.07. Estee Lauder Companies had a positive return on equity of 20.66% and a negative net margin of 1.67%.The firm had revenue of $3.64 billion during the quarter, compared to the consensus estimate of $3.55 billion. During the same period in the prior year, the firm earned $0.09 EPS. The firm’s quarterly revenue was up 6.3% compared to the same quarter last year. Estee Lauder Companies has set its FY 2027 guidance at 3.100-3.350 EPS.

Key Estee Lauder Companies News

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

• Positive Sentiment: Adjusted fourth-quarter earnings were $0.39 per share, exceeding the $0.32 consensus estimate and rising sharply from $0.09 a year earlier. Revenue reached approximately $3.64 billion, above the $3.55 billion forecast and up 6.3% year over year. Estee Lauder Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management raised its adjusted operating-margin outlook for fiscal 2027, signaling that cost controls and the turnaround strategy are beginning to improve profitability. The company also forecast fiscal 2027 revenue of $15.5 billion to $15.8 billion and EPS of $3.10 to $3.35, with the EPS range modestly above the $3.18 consensus at its midpoint. Estée Lauder Stock Rises After Earnings Beat and Margin Outlook
• Positive Sentiment: Strong demand in China and continued spending on premium fragrances supported the outlook. Fiscal 2026 organic sales increased 3%, while management cited broad-based brand growth and significant operating-margin expansion. Estée Lauder Forecasts Annual Profit Above Estimates
• Neutral Sentiment: Royal Bank of Canada reaffirmed its Outperform rating and maintained a $111 price target, adding support to investor sentiment, although the target predates the latest earnings report. Royal Bank of Canada Reiterates Outperform Rating
• Negative Sentiment: The fiscal 2027 EPS guidance range begins below the consensus estimate, and ongoing valuation concerns could limit further gains if the turnaround or China recovery loses momentum. The company also continues to report a negative net margin and elevated leverage.

Wall Street Analysts Forecast Growth

A number of research firms have commented on EL. Citigroup increased their target price on Estee Lauder Companies from $92.00 to $110.00 and gave the stock a “buy” rating in a report on Friday, May 22nd. Zacks Research downgraded Estee Lauder Companies from a “strong-buy” rating to a “hold” rating in a report on Friday, July 10th. Sanford C. Bernstein initiated coverage on Estee Lauder Companies in a research note on Friday, June 12th. They set a “market perform” rating and a $82.00 price objective on the stock. Jefferies Financial Group raised their price objective on Estee Lauder Companies from $80.00 to $88.00 and gave the stock a “hold” rating in a research note on Tuesday, July 28th. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Estee Lauder Companies in a report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $96.84.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. REAP Financial Group LLC acquired a new position in shares of Estee Lauder Companies in the 4th quarter worth approximately $27,000. Investors Towarzystwo Funduszy Inwestycyjnych Spolka Akcyjna acquired a new stake in Estee Lauder Companies during the fourth quarter valued at approximately $27,000. Trust Co. of Vermont bought a new stake in Estee Lauder Companies during the second quarter worth approximately $28,000. Kozak & Associates Inc. bought a new stake in Estee Lauder Companies during the second quarter worth approximately $30,000. Finally, N.E.W. Advisory Services LLC grew its position in Estee Lauder Companies by 39.1% in the fourth quarter. N.E.W. Advisory Services LLC now owns 324 shares of the company’s stock worth $34,000 after buying an additional 91 shares during the last quarter. 55.15% of the stock is owned by institutional investors and hedge funds.

Estee Lauder Companies Stock Performance

The stock has a market cap of $35.50 billion, a price-to-earnings ratio of -140.17, a price-to-earnings-growth ratio of 0.68 and a beta of 1.25. The company’s 50-day simple moving average is $84.15 and its 200-day simple moving average is $86.79. The company has a quick ratio of 0.94, a current ratio of 1.27 and a debt-to-equity ratio of 1.71.

About Estee Lauder Companies

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.