-=Estee Lauder (EL) reported earnings on Mon 20 Aug 18 (b/o)

Estee Lauder beats by $0.05, beats on revs; guides Q1, FY19 below consensus 

• Reports Q4 (Jun) earnings of $0.61 per share, excluding non-recurring items, $0.05 better thanthe S&P Capital IQ Consensus of $0.56; revenues rose 13.9% year/year to $3.29 bln vs the $3.25 bln S&P Capital IQ Consensus.
• Co issues downside guidance for Q1, sees EPS of $1.18-1.22, excluding non-recurring items, vs. $1.31 S&P Capital IQ Consensus; sees Q1 revs of $3.44-3.47 bln (+5-6%) vs. $3.5 bln S&P Capital IQ Consensus.
• Co issues downside guidance for FY19, sees EPS of $4.62-4.71, excluding non-recurring items, vs. $4.99 S&P Capital IQ Consensus; sees FY19 revs of $14.23-14.37 bln (+4-5%) vs. $14.51 bln S&P Capital IQ Consensus.
• Global prestige beauty is continuing to perform exceptionally well and is estimated to grow 5% to 6% during the fiscal year. The Company expects to grow ahead of the industry. Last quarter, the Company disclosed it was conducting a review of certain testing related to product advertising claims support. The review is ongoing and, based on the review to date, the Company does not believe that this matter will be material. For fiscal 2019, there are two items expected to negatively impact sales growth. The Company has adopted the new revenue recognition accounting standard using a modified retrospective adoption method, which means fiscal year 2018 is not restated. As fiscal 2019 is the transition year for this accounting change, the year-over-year growth rate will be reduced as a result of adopting this new standard. The recent strengthening of the U.S. dollar is also expected to negatively impact growth.