Benzinga | Feb 4, 2021 11:24AM EST

The Estee Lauder Cos Earnings Preview

The Estee Lauder Cos (NYSE:EL) unveils its next round of earnings this Friday, February 05. Get prepared with Benzinga's ultimate preview for The Estee Lauder Cos's Q2 earnings.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

The Estee Lauder Cos EPS will likely be near $1.69 while revenue will be around $4.49 billion, according to analysts. In the same quarter last year, The Estee Lauder Cos posted EPS of $2.11 on sales of $4.62 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 19.91% decrease in the company's earnings. Revenue would be down 2.9% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2020EPS Estimate 0.90 -0.19 0.75 1.90EPS Actual 1.44 -0.53 0.86 2.11Revenue Estimate 3.45 B 2.45 B 3.06 B 4.38 BRevenue Actual 3.56 B 2.43 B 3.35 B 4.62 B

Stock Performance

Over the last 52-week period, shares of The Estee Lauder Cos are up 18.85%.

Do not be surprised to see the stock move on comments made during its conference call. The Estee Lauder Cos is scheduled to hold the call at 09:30:00 ET and can be accessed here.