Estee Lauder is a big company that makes and sells things like makeup and perfume. They had some good news recently because they made more money than people thought they would in the last few months. But, they think they won't make as much money as people thought they would in the coming year. So, the people who buy and sell pieces of Estee Lauder (called stocks) might be sad or worried about it. That's why the price to buy Estee Lauder stocks went down. Read from source...
1. First inconsistency observed is in the opening and closing statements of the article, wherein the upbeat Q4 results are praised while the lowered EPS forecast is criticized.
2. Second, the analysts' different price targets for Estee Lauder were noted, with some making drastic cuts, which could impact investor decisions.
3. The language used in presenting CEO Fabrizio Freda's retirement was also picked apart, as it was phrased in a way that might create uncertainty in investors' minds.
4. Finally, a few analysts' reports were analyzed, revealing that some had strong justifications for their price cuts, while others seemed overly pessimistic.
5. Despite these criticisms, it was acknowledged that the overall message - that investors should exercise caution with Estee Lauder stocks - might still hold true, given the downward revision of the EPS forecast.
bearish
The sentiment of the article titled `These Analysts Slash Their Forecasts On Estee Lauder Following Q4 Results` is bearish because the analysts have slashed their price targets on Estee Lauder following the Q4 results. The company's worse-than-expected FY25 EPS outlook and declined prestige beauty segment in China are also bearish indicators. The stock price fell 2.3% after the earnings announcement, which further supports the bearish sentiment.
Estee Lauder Companies Inc (EL) reported strong fourth-quarter results, with sales growth of 7% YoY to $3.87 billion, beating the consensus estimate of $3.83 billion. However, the company issued a worse-than-expected FY25 EPS outlook. Estee Lauder expects an FY25 adjusted EPS outlook of $2.75-$2.95 (vs. consensus of $4.02) and organic & reported revenue growth of 1%-2%. For the first quarter, Estee Lauder expects adjusted EPS of 2 cents to 10 cents (vs. consensus of 66 cents) and organic and reported net sales growth of (5)% - (3)%.
After the earnings announcement, several analysts made changes to their price targets on Estee Lauder. Deutsche Bank analyst Steve Powers maintained the stock with a Hold and lowered the price target from $108 to $105. DA Davidson analyst Linda Bolton Weiser maintained the stock with a Buy and slashed the price target from $191 to $130. Telsey Advisory Group analyst AIa Telsey maintained Estee Lauder with a Market Perform and lowered the price target from $115 to $105. Stifel analyst Mark Astrachan maintained the stock with a Buy and lowered the price target from $165 to $125.
Considering the worse-than-expected EPS outlook and analysts' reduced price targets, potential investors should exercise caution before investing in EL stock. However, if you decide to invest, a long-term perspective may be helpful, given the company's strong financials and market position.