Estee Lauder Companies (NYSE:EL) Posts Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Estee Lauder Companies reported quarterly earnings of $0.09 per share, beating expectations by $0.02, despite a negative net margin of 5.89% and a positive return on equity of 15.60%.
• Recent trading data showed a market capitalization of $32.42 billion and a P/E ratio of -37.24, with stock performance reflecting a 12-month range between $48.37 and $103.44.
• Institutional investors own 55.15% of Estee Lauder's stock, with several hedge funds significantly increasing their positions during the second quarter of the year.

Estee Lauder Companies (NYSE:EL - Get Free Report) issued its earnings results on Wednesday. The company reported $0.09 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.07 by $0.02, Zacks reports. The business had revenue of $3.41 billion for the quarter, compared to analyst estimates of $3.36 billion. Estee Lauder Companies had a negative net margin of 7.91% and a positive return on equity of 12.37%. The company's revenue for the quarter was down 11.9% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.64 EPS. Estee Lauder Companies updated its FY 2026 guidance to 1.900-2.100 EPS.

Estee Lauder Companies Stock Performance

NYSE EL traded down $2.53 on Monday, hitting $88.70. The stock had a trading volume of 1,641,124 shares, compared to its average volume of 4,191,125. Estee Lauder Companies has a one year low of $48.37 and a one year high of $103.44. The company has a quick ratio of 0.92, a current ratio of 1.30 and a debt-to-equity ratio of 1.89. The stock has a market cap of $31.91 billion, a price-to-earnings ratio of -28.26, a P/E/G ratio of 2.61 and a beta of 1.18. The company's 50-day moving average is $86.79 and its two-hundred day moving average is $72.35.

Estee Lauder Companies Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd will be given a $0.35 dividend. The ex-dividend date is Tuesday, September 2nd. This represents a $1.40 annualized dividend and a yield of 1.6%. Estee Lauder Companies's dividend payout ratio is -44.59%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of EL. EverSource Wealth Advisors LLC grew its position in Estee Lauder Companies by 23.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 997 shares of the company's stock worth $81,000 after purchasing an additional 188 shares during the last quarter. Snowden Capital Advisors LLC bought a new position in Estee Lauder Companies in the 2nd quarter worth about $217,000. Orion Porfolio Solutions LLC grew its position in Estee Lauder Companies by 12.6% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 3,750 shares of the company's stock worth $303,000 after purchasing an additional 421 shares during the last quarter. Empowered Funds LLC boosted its holdings in shares of Estee Lauder Companies by 24.1% in the first quarter. Empowered Funds LLC now owns 4,619 shares of the company's stock valued at $305,000 after acquiring an additional 898 shares in the last quarter. Finally, WINTON GROUP Ltd bought a new position in shares of Estee Lauder Companies in the second quarter valued at approximately $447,000. Institutional investors own 55.15% of the company's stock.

Analyst Ratings Changes

A number of brokerages have recently issued reports on EL. Bank of America began coverage on shares of Estee Lauder Companies in a research note on Thursday, July 10th. They issued a "buy" rating and a $110.00 target price on the stock. Wall Street Zen lowered shares of Estee Lauder Companies from a "hold" rating to a "sell" rating in a research note on Friday. Piper Sandler reaffirmed an "overweight" rating and set a $75.00 price objective (down previously from $92.00) on shares of Estee Lauder Companies in a research report on Friday, May 2nd. Canaccord Genuity Group boosted their price objective on shares of Estee Lauder Companies from $62.00 to $85.00 and gave the company a "hold" rating in a research report on Monday, August 18th. Finally, Wells Fargo & Company boosted their price objective on shares of Estee Lauder Companies from $60.00 to $90.00 and gave the company an "equal weight" rating in a research report on Wednesday, July 9th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $87.80.

About Estee Lauder Companies

The Estée Lauder Companies Inc manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. It offers skin care products, including moisturizers, serums, cleansers, toners, body care, exfoliators, acne care and oil correctors, facial masks, and sun care products; and makeup products, such as lipsticks, lip glosses, mascaras, foundations, eyeshadows, and powders, as well as compacts, brushes, and other makeup tools.