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.