Estée Lauder Companies Inc. (NYSE: EL) Earnings Preview: Fiscal Q3 2025 Insights

• Estée Lauder is set to release its fiscal 2025 third-quarter earnings with an estimated EPS of $0.30 and projected revenue of $3.52 billion.
• The company faces challenges in China, issues within travel retail, and rising expenses, contributing to an anticipated decline in earnings and revenue.

Estée Lauder Companies Inc. (NYSE: EL) is a global leader in the beauty industry, known for its high-quality skincare, makeup, fragrance, and hair care products. The company operates in over 150 countries and territories, with a diverse portfolio of brands including Estée Lauder, Clinique, and MAC Cosmetics. As a major player in the beauty sector, Estée Lauder faces competition from other industry giants like L'Oréal and Procter & Gamble.

Estée Lauder is set to release its fiscal 2025 third-quarter earnings on May 1, 2025, before the market opens. Analysts estimate the earnings per share (EPS) to be $0.30, with projected revenue of approximately $3.52 billion. This represents a significant decline, as the Zacks Consensus Estimate indicates a 10.9% decrease in net sales compared to the same quarter last year, and a 69.1% drop in EPS from the previous year's quarter.

The anticipated decline in Estée Lauder's earnings and revenue is attributed to challenges in China, issues within travel retail, and rising expenses. Despite these hurdles, the company has previously delivered an average earnings surprise of 101.9% over the last four quarters. This track record suggests that Estée Lauder might surpass earnings estimates in its upcoming report, potentially leading to an upward movement in its stock price.

The price-to-sales ratio is about 1.41, suggesting investors are willing to pay $1.41 for every dollar of sales. Additionally, the debt-to-equity ratio is 2.25, showing that the company has more than twice as much debt as equity, which could impact its financial stability.

The earnings call, hosted by President and CEO Stéphane de La Faverie and CFO Akhil Shrivastava, will provide insights into the company's results, future prospects, and recent corporate developments. The management's discussion will be crucial in determining the sustainability of any immediate price changes and future earnings expectations. Investors will be keenly watching for any positive surprises that could influence Estée Lauder's stock performance.