=Estee Lauder (EL) reported earnings on Tue 5 Feb 2019 (b/o)

Estee Lauder beats by $0.01, beats on revs; guides Q3 EPS above consensus; guides FY19 EPS above consensus

• Reports Q2 (Dec) earnings of $1.55 per share, $0.01 better than the S&P Capital IQ Consensus of $1.54; revenues rose 7.0% year/year to $4 bln vs the $3.92 bln S&P Capital IQ Consensus.
• Co issues upside guidance for Q3, sees EPS of $1.26-1.28, excluding non-recurring items, vs. $1.24 S&P Capital IQ Consensus.
  • Reported net sales are forecasted to increase between 5% and 6% versus the prior-year period, including a 5% impact from currency translation and a 2% benefit from the adoption of ASC 606. Excluding these items, net sales are expected to grow between 8% and 9%.
    • Current cap iq consensus estimates Q3 revs +2.4% Y/Y
• Co issues upside guidance for FY19, sees EPS of $4.92-5.00, excluding non-recurring items, vs. $4.86 S&P Capital IQ Consensus.
  • Reported net sales are forecasted to increase between 5% and 6% versus the prior-year period, which includes a 3% impact from currency translation and no impact from the adoption of ASC 606. Excluding these items, net sales are forecasted to grow between 8% and 9%, above the Company's long-term growth goal of 6% to 8%.
    • Current cap iq consensus estimates 2019 revs +4.7% 
• Co states, "Our strongest growth engines this quarter included the skin care category globally, the Asia/Pacific region, the online and travel retail channels, and most brands, including Este Lauder, La Mer, MAC and our artisanal fragrance brands."