Estée Lauder (NYSE: EL) shares tumbled 5.23% in pre-market trading on Wednesday, as investors appear to be bracing for potentially disappointing fourth-quarter results. The cosmetics giant is set to release its earnings report before the market opens, with analysts projecting a significant decline in both earnings per share and revenue compared to the same period last year.
According to data from Benzinga Pro, analysts expect Estée Lauder to report quarterly earnings of just 9 cents per share, a sharp drop from 64 cents per share in the year-ago period. Revenue is projected to come in at $3.4 billion, down from $3.87 billion in the previous year's quarter. This anticipated decline in financial performance seems to be weighing heavily on investor sentiment ahead of the official announcement.
Despite the current negative sentiment, it's worth noting that several analysts have recently adjusted their price targets for Estée Lauder. JP Morgan upgraded the stock from Neutral to Overweight with a price target of $101, while other firms such as Deutsche Bank and Telsey Advisory Group have maintained positive or neutral stances with increased price targets. However, the imminent earnings release appears to be overshadowing these longer-term outlooks in today's pre-market trading.
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