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on tuesday, estee lauder (NYSE:) received an updated price target from Jefferies following the company's latest earnings report. The adjustment came as the cosmetics giant's shares rose on the back of a comprehensive cost-cutting plan, strong operating results and no cuts to its sales outlook for the first time in four quarters.
The company's third-quarter guidance and revised full-year 2024 forecast were broadly in line with existing market expectations. The latest financial outlook suggests that sales and earnings per share (EPS) will recover in the second half of the financial year, with the company targeting 10% growth after falling 9% in the first half.
Jeffries pointed to challenges in predicting the recovery trajectory for Estée Lauder's travel retail and China operations. Nevertheless, the company expects Estée Lauder's fiscal year 2025 financials to benefit from the implementation of cost-cutting measures.
Investment Pro Insights
Renowned cosmetics company Estée Lauder (NYSE:EL) has shown financial resilience amid market challenges. According to the latest data from InvestingPro, Estée Lauder boasted a solid gross margin of 70.28% over the past 12 months as of Q1 2024, supporting the company's strong pricing power and cost control strategy. I am.
Investors may also be interested in the company's dividend history. Not only has Estée Lauder maintained an impressive 29 consecutive years of dividend payments, but over the past 12 months ending in Q1 2024, he has increased his dividend by 10.0%. This reflects the company's commitment to shareholder returns and financial stability.
Despite some revenue challenges, including a decline of 10.29% over the past 12 months as of Q1 2024, Estée Lauder has delivered significant revenue over the past three months, with a price-to-total return of It is 34.08%. This recent performance may be an indicator of investors' confidence in the company's strategic direction and recovery potential.
For investors who want to learn more about Estée Lauder's financial health and prospects, InvestingPro provides additional insight. Thirteen more of her InvestingPro tips are available, including analysis of earnings revisions and valuation multiples, giving subscribers a comprehensive understanding of a company's position in the market.Use coupon code SFY24 Purchase a 2-year InvestingPro+ subscription for an extra 10% off or SFY241 Get an extra 10% off your 1-year InvestingPro+ subscription.
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