Estee Lauder Gets Ugly After New Forecast
Beauty products maker Estee Lauder on Thursday said it reversed a year-ago loss in the fourth quarter, but its fiscal 2011 forecast fell short of expectations, sending its shares plunging in premarket trading. New York-based Estee Lauder ( EL – news – people ) reported fiscal fourth quarter net income of $23.9 million, or 12 cents per share, compared with a net loss of $17.9 million, or 9 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 29 cents per share. On average, Wall Street analysts expected a slightly higher profit of 30 cents per share for the quarter. Sales rose 9% from last year, to $1.84 billion. Looking ahead, the company forecast fiscal first quarter profit to range from 67 to 80 cents per share, and full-year 2011 earnings of $2.80 to $3.05 per share. Analysts currently expect 77 cents in the first quarter and a significantly higher $3.16 for the year. Estee Lauder shares fell as much as 7%, in premarket trading Thursday but shortly before noon had pared losses to -2.7% compared to yesterday’s close. The Bottom Line Shares of EL have a 0.91% dividend yield, based on last night’s closing stock price of $60.35. The stock has technical support in the $55 price area. If the shares can firm up, we see overhead resistance around the $65-$67 price levels. We would remain on the sidelines for now. Estee Lauder is not recommended at this time, holding a Dividend.com DARS Rating of 3.4 out of 5 stars.
Similar Posts:
- Healthcare Realty Trust Holds The Line On Dividend
- Stock Picks of the Week (AMD, BAC, YHOO)
- Amazon Shares Gain After Q2 Beats on Top, Bottom Line
- Expedia Rocks It On Strong International Performance
- Insiders at Taleo (TLEO) selling like crazy
