Estee Lauder delivered a revenue and earnings beat, while boosting guidance for the year ahead. The company's cost-cutting and reinvestment plan appears to be gaining traction.
Estee Lauder Companies Inc (NYSE:EL) on Wednesday reported better-than-expected fourth-quarter financial results and issued its FY27 sales guidance with its midpoint above estimates.
Estee Lauder posted strong Q4 results, with organic sales up 5% and EPS beating estimates, driving a 16% stock rally. EL's Profit Recovery and Growth Plan targets $1.2 billion in cost savings by 2028, with significant headcount reductions and supply chain rationalization underway. Despite improving momentum, EL trades at ~25x 2028 EPS, which I view as excessive for a mid-single-digit growth profile.
The Estee Lauder Companies Inc. (NYSE: EL - Get Free Report) was the recipient of some unusual options trading activity on Wednesday. Traders purchased 7,138 call options on the company. This is an increase of approximately 46% compared to the average daily volume of 4,904 call options. Analyst Upgrades and Downgrades EL has been the topic