Estee Lauder Falls on Increased Ad Spending (EL)

Photo of Paul Ausick
By Paul Ausick Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

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.

Contact [email protected] for any questions or corrections.

Photo of Paul Ausick
About the Author Paul Ausick →

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.

Featured Reads

Our top personal finance-related articles today. Your wallet will thank you later.

Continue Reading

Top Gaining Stocks

HPE Vol: 26,431,700
NCLH Vol: 17,600,839
LRCX Vol: 12,118,424
IVZ Vol: 4,557,369
AMD
AMD Vol: 26,902,257

Top Losing Stocks

CTRA Vol: 73,319,495
APA
APA Vol: 4,400,255
PSKY Vol: 18,873,941
COST Vol: 4,545,300
CINF Vol: 2,196,176