On Tuesday, Estee Lauder (NYSE:EL) received an updated price target from Jefferies following the company's latest earnings report. The adjustment comes as the cosmetics giant's shares experienced an uptick, buoyed by a comprehensive cost-saving plan, robust results, and the absence of a sales guidance reduction for the first time in four quarters.
The company's third fiscal quarter guidance and revised full-year 2024 projections were largely aligned with existing market estimates. The updated financial outlook suggests an expectation for sales and earnings per share (EPS) to rebound in the second half of the fiscal year, targeting a 10% growth after a 9% decline in the first half.
Jefferies noted the challenges in forecasting a recovery trajectory for Estee Lauder's Travel Retail and China operations. Nevertheless, the firm anticipates that Estee Lauder's financials for fiscal year 2025 will benefit from the implementation of cost-saving measures.
InvestingPro Insights
Estee Lauder (NYSE:EL), the renowned cosmetics company, has been demonstrating financial resilience amidst market challenges. According to the latest data from InvestingPro, Estee Lauder boasts a robust gross profit margin of 70.28% over the last twelve months as of Q1 2024, underscoring the company's strong pricing power and cost management strategies.
Investors may also take interest in the company's dividend track record. Estee Lauder has not only maintained dividend payments for an impressive 29 consecutive years but has also achieved a dividend growth of 10.0% in the last twelve months leading up to Q1 2024. This reflects the company's commitment to shareholder returns and financial stability.
Despite some revenue challenges, with a decline of 10.29% over the last twelve months as of Q1 2024, Estee Lauder has seen a significant return over the past three months, with a price total return of 34.08%. This recent performance could be an indicator of investor confidence in the company's strategic direction and recovery potential.
For investors looking to dive deeper into Estee Lauder's financial health and future prospects, InvestingPro offers additional insights. With 13 more InvestingPro Tips available, including analysis on earnings revisions and valuation multiples, subscribers can gain a comprehensive understanding of the company's position in the market. Use coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year InvestingPro+ subscription.
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