Beauty products maker Estée Lauder Companies Inc. (EL) reported 13% higher second-quarter net earnings attributable to the company of $447.5 million, or $1.13 per share, versus $396.7 million, or $1.00 per share, a year ago. The latest quarter results included returns and charges associated with restructuring activities of $14.6 million, or $9.5 million after tax, equal to $0.02 per share, while the prior year's results included returns and charges associated with restructuring activities of $6.1 million, or $4.4 million after tax, equal to $0.01 per share, the company said.
Excluding items, net earnings totaled $457.0 million, or $1.16 per share this quarter. On average, 19 analysts polled by Thomson Reuters expected earnings per share of $1.05 for the quarter. Analysts' estimates typically exclude one-time items.
Quarterly net sales of $2.93 billion, were 7% higher compared with the prior-year figure of $2.74 billion, thereby beating the consensus estimates of $2.90 billion. Excluding the impact of foreign currency translation, net sales also rose 7% from last year. The company said these results were delivered against a 10% local currency sales growth last year and continued softness in certain markets, mainly Southern Europe and Korea.
For fiscal 2013, the company confirmed its sales growth forecast of between 6% and 7% in local currency, while it raised earnings per share guidance to $2.51 to $2.59, excluding charges associated with restructuring activities and the impact of the early extinguishment of debt. Twenty analysts project annual earnings per share of $2.57.
Earlier, full-year net earnings per share before charges associated with restructuring activities and the impact of the early extinguishment of debt were projected to be $2.47 to $2.56, up 9% to 13%.
by RTT Staff Writer
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