Taking a look at a recent 8-K filing, we can see that latest quarterly numbers. Net sales of the first quarter of fiscal 2017 were $2.87 billion, which is an increase of 1% compared to the prior years quarter. Net earnings were $294 million compare to $309 million last year, and diluted earnings per common share were $0.79 compared with $0.82 in the prior year. The numbers are not worrisome as they are staying around last years, but at some point you want to see consistent growth.
Switching gears to the chart, we can see that the company is in a range and that it is respecting the highs and the lows of the range. Now would be a good time to watch and see which end of the range it breaks, because that can signal a new longer term trend. If you’re a trader, this is perfect because you can sell the highs and buy the lows until proven otherwise. This chart is good for both investors and traders, but investors might have to wait before jumping in.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Estee Lauder income statement, its balance sheet, and the statement of cash flows. Potential Estee Lauder investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Estee Lauder investors may use each financial statement separately, they are all related. The changes in Estee Lauder's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Estee Lauder's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Estee Lauder
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Estee Lauder performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Estee Lauder shares is the value that is considered the true value of the share. If
the intrinsic value of Estee is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Estee Lauder. Please read more on our
fundamental analysis page.
How effective is Estee Lauder in utilizing its assets?
Estee Lauder Companies reports assets on its Balance Sheet. It represents the amount of Estee resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Estee Lauder aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Personal Care Products space. To get a better handle on how balance sheet or income statements item affect Estee volatility, please check the breakdown of all its
fundamentals.
Are Estee Lauder Earnings Expected to grow?
The
future earnings power of Estee Lauder involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Estee Lauder factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Estee Lauder
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Estee
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Estee Lauder earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Estee Lauder dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Estee one year expected dividend income is about USD1.72 per share.
At this time, Estee Lauder's
Dividends Paid is quite stable compared to the past year.
Dividend Payout Ratio is expected to rise to 0.87 this year, although the value of
Dividend Yield will most likely fall to 0.01.
Investing in dividend-paying stocks, such as Estee Lauder Companies is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Estee Lauder must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Estee Lauder. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Estee Lauder Gross Profit
Estee Lauder Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Estee Lauder previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Estee Lauder Gross Profit growth over the last 10 years. Please check Estee Lauder's
gross profit and other
fundamental indicators for more details.
An Additional Perspective On Estee Lauder Companies
Risks
Being in the retail sector has some of the same general risks that all retailers have, but here are few from their latest 10-K that you should note, that may be different. The company cites the beauty business is highly competitive and if they do not compete effectively, their numbers and overall business will suffer. There are so many beauty products, and the company has to find a way to distinguish themselves from the others. Also, the inability to predict and anticipate trends could adversely affect the company. Have the newest and best makeup products will set the company apart and allow them to succeed.
Conclusion
This company has been around the scene for a while and continues to provide value for their customers. As the makeup and beauty scene grows, it is important to watch and ensure the company evolving as well. Compare this company to others in the market place, and if you’re still unsure, be sure to consult an investing professional as they can assist you in making the correct choice.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Estee Lauder Companies. Please refer to our
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