(EL) - The Estee Lauder Companies, Inc - company crushed the consensus estimate by 42.1%

The Estee Lauder Companies, Inc. (EL), a Zacks #1 Rank stock, topped the Street’s earnings estimate over the past four quarters by an average margin of 21.1%. EL has increased revenues for eight years running. The Board of Directors recently authorized an increase in the company’s dividend to 50 cents per share. EL is currently yielding 1.2% and has a five-year average dividend yield of 0.81%. Full Analysis The Estee Lauder Companies, Inc. engages in the manufacture, marketing and sale of skin care, makeup, fragrance and hair care products. The company's products are sold in over 130 countries and territories. EL distributes its products through department stores, specialty retailers, perfumeries, pharmacies, and prestige salons and spas, as well as freestanding company-owned stores and spas, its own and authorized retailer Web sites, stores on cruise ships and duty-free shops. EL exceeded analysts’ earnings expectations over the past four quarters by an average margin of 21.1%. In three out of the four quarters the company was able to surprise by a double-digit percentage. On Oct 25, EL posted first-quarter fiscal 2007 profits of 27 cents per share. With analysts calling for 19 cents, the company crushed the consensus estimate by 42.1%. Compared to the prior-year period, earnings were down a penny. Net sales climbed 6.0% to $1.59 billion from $1.50 billion in the first quarter of fiscal 2006. The company is scheduled to report its second-quarter financial results on Jan 31. President and CEO William P. Lauder stated, “This quarter we invested in our fast-moving businesses to accelerate momentum, while prudently controlling costs in other areas. The result was top line growth above the industry average and a better than expected bottom line performance.” EL increased revenues for the past eight years, while expanding gross margins for the past four. Earnings per share grew 14% over the past five years. Going forward, earnings per share are projected to grow 13%, with the industry expected to grow by 12%. EL forecasts second-quarter net sales growth between 6% and 8% in constant currency. For the full fiscal year, the company’s net sales growth is anticipated to be between 5% and 7% in constant currency. The Board of Directors recently authorized an increase the company’s dividend to 50 cents per share. The move represented a 25% boost over the previous annual rate of 40 cents per share that was paid in December 2005. EL is currently yielding 1.2% and has a five-year average dividend yield of 0.81%. The company’s return on equity nearly triples that of the industry average—-26% compared to 10%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home