Estee Lauder Falls on Increased Ad Spending (EL)
Cosmetics maker Estee Lauder Cos. Inc. (NYSE: EL) reported earnings about as expected this morning, but lowered its fiscal third quarter guidance far below the consensus EPS estimate of $0.41. The company now expects to post EPS next quarter of…
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Cosmetics maker Estee Lauder Cos. Inc. (NYSE: EL) reported earnings about as expected this morning, but lowered its fiscal third quarter guidance far below the consensus EPS estimate of $0.41. The company now expects to post EPS next quarter of $0.28-$0.32.
For the full 2012 fiscal year ending in June the company expects to post EPS of $2.16-$2.23, a little short of the consensus estimate of $2.26.
Lauder plans to increase its advertising spending in the third quarter by about $80 million, which will cost shareholders about $0.14/share in earnings. The company also noted that its fourth quarter is where its “investment spending” was the heaviest for the prior fiscal year.
Shares are down about -3.5% at $56.79 in a 52-week range of $40.76-$60.37.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
