Estée Lauder (NYSE: EL) shares tumbled 5.23% in pre-market trading on Wednesday, as investors braced for the company's fourth-quarter earnings report due before the opening bell. The cosmetics giant is expected to reveal a significant decline in both earnings and revenue, raising concerns about its performance in a challenging market environment.
Analysts project Estée Lauder to report quarterly earnings of just 9 cents per share, a stark drop from 64 cents per share in the same period last year. Revenue is anticipated to fall to $3.4 billion, down from $3.87 billion in the previous year's quarter. These projections suggest a notable slowdown in the company's business, likely due to ongoing economic uncertainties and shifts in consumer spending habits.
Despite the gloomy short-term outlook, some Wall Street analysts remain optimistic about Estée Lauder's long-term prospects. Recent analyst actions include JP Morgan upgrading the stock to Overweight with a price target of $101, while others have maintained their ratings but adjusted price targets. The mixed analyst sentiment reflects the complex challenges and opportunities facing the luxury beauty market in the current economic climate.
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