Why Estee Lauder (EL) is Poised to Beat Earnings Estimates Again

Earnings Performance - Estee Lauder has consistently beaten earnings estimates in the last two quarters, with an average surprise of 105.78% [2] - In the last reported quarter, the company posted earnings of $0.14 per share, surpassing the Zacks Consensus Estimate of$0.09 per share by 55.56% [3] - In the previous quarter, Estee Lauder delivered earnings of $0.64 per share, significantly exceeding the expected$0.25 per share, resulting in a 156% surprise [3] Earnings ESP and Zacks Rank - Estee Lauder currently has a positive Earnings ESP of +0.83%, indicating bullish sentiment among analysts regarding its near-term earnings potential [7] - The company holds a Zacks Rank 3 (Hold), which, combined with its positive Earnings ESP, suggests a high likelihood of another earnings beat [7] - Stocks with a positive Earnings ESP and a Zacks Rank 3 or better have historically produced a positive surprise nearly 70% of the time [5] Earnings ESP Methodology - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the former reflecting the latest analyst revisions before an earnings release [6] - A positive Earnings ESP is a strong indicator of an earnings beat, especially when paired with a favorable Zacks Rank [4] - While a negative Earnings ESP reduces predictive power, it does not necessarily indicate an earnings miss [8] Upcoming Earnings Report - Estee Lauder's next earnings report is expected to be released on February 4, 2025 [7] - Investors are advised to monitor the company's Earnings ESP ahead of the quarterly release to assess the likelihood of another earnings beat [9]