Estee Lauder’s Earnings Beat Streak Signals Positive Outlook Ahead
Are you on the lookout for a Stock likely to extend its earnings surprise trend in the upcoming report? Estee Lauder (EL), part of the Zacks Cosmetics industry, deserves your consideration. This company has consistently outperformed earnings estimates, achieving a remarkable average surprise of 74.65% over its last two reports.
In its most recent quarter, Estee Lauder reported earnings of $0.62 per share, far exceeding the Zacks Consensus Estimate of $0.32 per share, marking a substantial surprise of 93.75%. Prior to that, with expectations set at $0.09 per share, the company’s actual earnings registered at $0.14 per share, yielding a surprise of 55.56%.
Earnings Surprise and Price Performance
Estee Lauder’s strong track record has led to positive adjustments in earnings estimates recently. Notably, the Zacks earnings ESP (Expected Surprise Prediction) for the Stock is currently positive. This development, paired with its solid Zacks Rank, enhances the likelihood of another earnings beat.
Research indicates that stocks with a positive earnings ESP and a Zacks Rank of #3 (Hold) or better realize a positive surprise rate of nearly 70%. This suggests that among 10 stocks with this mix, as many as seven could exceed consensus estimates.
The Zacks earnings ESP evaluates the Most Accurate Estimate against the Zacks Consensus Estimate for the quarter, as the Most Accurate Estimate reflects the latest analyst insights. This metric can provide a more accurate picture than previous expectations from analysts contributing to the consensus.
Currently, Estee Lauder’s earnings ESP stands at +14.31%, indicating renewed optimism from analysts about the company’s earnings prospects. This positive earnings ESP, combined with Estee Lauder’s Zacks Rank of #3 (Hold), suggests the possibility of another earnings beat. The next earnings report is anticipated on May 1, 2025.
When utilizing the earnings ESP metric, it’s essential to recognize that a negative value can diminish its predictive accuracy; however, it does not inherently indicate an impending earnings miss. Some companies surprise positively even when consensus estimates are missed, while others may perform well despite missing earnings estimates.
This underscores the importance of checking a company’s earnings ESP prior to its quarterly release, which can boost the odds of success. Leverage our earnings ESP Filter for the best insights into stocks to buy or sell before earnings announcements.
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This article was originally published by Zacks Investment Research (zacks.com).
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
