(EL) Estee Lauder Companies – Bull of the Day

Estee Lauder Companies’ (EL) first-quarter 2012 earnings of $1.41 per share surpassed both the Zacks Consensus Estimate as well as the year-ago result by 19.5% and 45.0%, respectively. The buoyant purchasing power of the affluent class who shop for products from cosmetics to big-ticket items also fueled strong sales in the luxury sector.

While skin care segment thrived during the quarter, travel retail gave a boost to the quarterly sales of the company. Successful recent launches coupled with unparalleled innovations backed the Estee Lauder’s strong business in the quarter. The company also raised its full-year earnings guidance by 25 cents from its previous estimates of $4.20 per share provided during August 2011.

Management further boosted dividend by 40% and declared a 2:1 stock split. Our six-month target price of $129.00 per share equates to about 28.4x of earnings estimate for 2012. Currently, we upgrade our long-term recommendation from Neutral to Outperform.

ESTEE LAUDER (EL): Free Stock Analysis Report

Zacks Investment Research

About vitalstocks

This is a sample profile field. Vitalstocks is the operating company for Stockbloghub. This will place the picture of the author or company in the profile. Here is another extra line of information.


Powered by Facebook Comments

Similar Posts: | | Consumer Goods | Personal Products

RSS feeds: EL | Estee Lauder Companies Inc. | Consumer Goods | Personal Products |

Other Posts by | RSS Feed for this author