The Estée Lauder Companies Inc. EL has recently posted a better-than-expected earnings result for the several preceding quarters. The results are heavily supported by new acquisitions, e-commerce business growth, and cost savings data. Also, the acquisitions in which have been reported to have generated strong yields supported the recent fourth-quarter 2017 results generally.

Estée Lauder's Sales in the makeup sector was seen increasing by 16%. This counts sales for its known brands such as Smashbox and La Mer. Totally, the sector garnered a $1.31 billion in which is accountable to the 44% segment of total revenue.  

As mentioned above, the recent acquisitions of the company have generally helped the boost in the total sales of the report. This sector added 3.5%.

Sales in airport and duty-free shops also helped the surge in which added a 9% increase to $2.89 billion in the recent quarter that ended in the 30th of June. Analysts only expected a data of $2.85 billion, as stated by reports.

Estée Lauder at the moment is more inclined for future development as its exports to known beauty stores, such as Ulta Beauty and even online retails have been seen improving. Also, Demands for its products from a rising middle class sector in China has been improving in numbers.

"We believe key drivers are in place to deliver these results." Oppenheimer & Co analysts told reports.

On the release date, the company told reports that it estimates a net sales for the whole fiscal year of 2018 of just 8-9% or $12.77 billion to $12.88 billion mostly. It also anticipates an adjusted profit of $3.87-$3.94 just for every share. For the analysts, the estimated data for the fiscal year results are $3.79 per share and sales of $12.60 billion respectively.

Estée Lauder’s Net Income surged to 6.1% to $229 million, in the recent quarter ended June 30, from $94 million, or 25 cents per share, if to compare on a year over year basis.

Apart from items, the corporation produced 51 cents per share, defeating analysts' average estimation of 43 cents for each share.

Trading Performance


Estée Lauder’s shares soared on its earnings release which is believed to be the effect of the hyped launch of the second limited edition makeup collection of Victoria Beckham in the coming month. Shares rose by 4.3 percent generally.

The Relative Strength Index was also seen approaching the 70’s region. Specifically, it was at 68.48. It is likely that it’ll surpass this region as the stock is currently hyped right now.

As for the Coppock curve, the stock is way up high in the positive region which means that  a decline for now is not likely. It is at 7.69 which would indicate a buy for the makeup stock.