Estée Lauder Companies (NYSE:EL) Shares Gap Up on Strong Earnings

The Estée Lauder Companies Inc. (NYSE:ELGet Free Report)’s share price gapped up before the market opened on Monday following a stronger than expected earnings report. The stock had previously closed at $134.12, but opened at $159.46. Estée Lauder Companies shares last traded at $153.12, with a volume of 3,779,753 shares.

The company reported $0.88 earnings per share for the quarter, topping analysts’ consensus estimates of $0.54 by $0.34. The company had revenue of $4.28 billion during the quarter, compared to the consensus estimate of $4.19 billion. Estée Lauder Companies had a return on equity of 13.93% and a net margin of 3.54%. The firm’s quarterly revenue was down 7.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.54 earnings per share.

Estée Lauder Companies Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 15th. Investors of record on Thursday, February 29th will be paid a dividend of $0.66 per share. This represents a $2.64 dividend on an annualized basis and a dividend yield of 1.73%. Estée Lauder Companies’s dividend payout ratio (DPR) is presently 173.69%.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on EL. The Goldman Sachs Group decreased their price objective on Estée Lauder Companies from $185.00 to $141.00 and set a “buy” rating for the company in a research note on Thursday, November 2nd. Telsey Advisory Group cut Estée Lauder Companies from an “outperform” rating to a “market perform” rating and decreased their price objective for the stock from $210.00 to $115.00 in a research note on Thursday, November 2nd. Berenberg Bank cut Estée Lauder Companies from a “buy” rating to a “hold” rating and decreased their price objective for the stock from $224.00 to $118.00 in a research note on Friday, November 3rd. Raymond James decreased their price objective on Estée Lauder Companies from $195.00 to $180.00 and set a “strong-buy” rating for the company in a research note on Monday, October 23rd. Finally, HSBC initiated coverage on Estée Lauder Companies in a research note on Tuesday, November 28th. They issued a “buy” rating and a $180.00 target price for the company. One analyst has rated the stock with a sell rating, sixteen have assigned a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, Estée Lauder Companies presently has an average rating of “Hold” and an average price target of $176.63.

Read Our Latest Report on Estée Lauder Companies

Institutional Trading of Estée Lauder Companies

Institutional investors and hedge funds have recently bought and sold shares of the stock. United Bank raised its stake in Estée Lauder Companies by 1.8% in the first quarter. United Bank now owns 4,879 shares of the company’s stock valued at $1,329,000 after buying an additional 88 shares during the period. Cibc World Market Inc. raised its stake in Estée Lauder Companies by 78.4% in the first quarter. Cibc World Market Inc. now owns 17,748 shares of the company’s stock valued at $4,833,000 after buying an additional 7,797 shares during the period. Prudential PLC bought a new stake in Estée Lauder Companies in the first quarter valued at approximately $1,147,000. Cetera Investment Advisers raised its stake in Estée Lauder Companies by 2.4% in the first quarter. Cetera Investment Advisers now owns 3,932 shares of the company’s stock valued at $1,071,000 after buying an additional 92 shares during the period. Finally, Sequoia Financial Advisors LLC raised its stake in Estée Lauder Companies by 27.3% in the first quarter. Sequoia Financial Advisors LLC now owns 978 shares of the company’s stock valued at $267,000 after buying an additional 210 shares during the period. Institutional investors own 55.15% of the company’s stock.

Estée Lauder Companies Stock Up 13.6 %

The company has a quick ratio of 0.97, a current ratio of 1.45 and a debt-to-equity ratio of 1.33. The firm has a 50 day simple moving average of $136.28 and a 200-day simple moving average of $143.13. The stock has a market cap of $54.53 billion, a P/E ratio of 100.66, a price-to-earnings-growth ratio of 4.17 and a beta of 1.07.

About Estée Lauder Companies

(Get Free Report)

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, nail polishes, and powders, as well as compacts, brushes, and other makeup tools.

Further Reading

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