Estée Lauder, the American multinational skincare and beauty products brand, experienced a 4% drop in its stock after reporting its earnings for the fiscal fourth quarter. While the company beat expectations on earnings and revenue, it lowered its full-year guidance, causing concern among investors. Estée Lauder reported adjusted earnings per share of 7 cents, surpassing the forecasted loss of 4 cents per share. Its revenue of $3.61 billion also exceeded expectations of $3.48 billion. However, the company issued weak guidance for the first quarter, expecting a loss between 31 cents and 21 cents per share, while analysts had anticipated earnings per share of 98 cents. This news led to a decline in Estée Lauder’s stock value.
How did Estée Lauder’s revised full-year guidance negatively impact investor confidence and contribute to the drop in stock value
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Estée Lauder, the renowned American skincare and beauty products brand, caught investors off guard with a 4% drop in its stock following the release of its fiscal fourth quarter earnings report. Although the company surpassed expectations on both earnings and revenue, its revised full-year guidance sparked concern among shareholders. Adjusted earnings per share came in at an impressive 7 cents, outperforming the anticipated loss of 4 cents per share. Additionally, Estée Lauder’s revenue of $3.61 billion exceeded the projected $3.48 billion. However, the company’s outlook for the first quarter left investors feeling uneasy, as it predicted a potential loss ranging from 31 cents to 21 cents per share, while analysts were anticipating earnings per share of 98 cents. Consequently, Estée Lauder’s stock value experienced a decline in response to this disheartening news.
Oh no, that’s not good for Estée Lauder. Let’s hope they can turn things around soon.
I’m surprised to see Estée Lauder’s shares drop after mixed earnings. Hopefully they can address the issues and bounce back stronger.