Estee Lauder is surging after raising guidance on strong Asia sales (EL)

Harry Wai/NurPhoto via Getty Images)

Estee Lauder beat on both the top and bottom lines.
The skincare-product giant also raised its guidance.
The results were boosted by strong Asia sales, shrugging off concerns about a Chinese economic slowdown.
Watch Estee Lauder trade live.

Estee Lauder surged nearly 12% to $152.21 a share Tuesday after the company raised guidance due to strong sales in Asia, shrugging off concerns about Chinese economic slowdown.

The skincare-product giant posted adjusted earnings of $1.86 a share in the second quarter, $0.31 higher than what Wall Street analysts were expecting, according to Bloomberg data. It had revenue of $4.01 billion, topping the $3.925 billion that was anticipated.

Estee Lauder’s strong top line was boosted by double-digit net sales increases in Asia/Pacific, both on a reported basis and in constant currency, according to the company. China, Hong Kong, and Japan continued to deliver strong growth, and Korea net sales accelerated.

"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 Estée Lauder, La Mer, M•A•C and our artisanal fragrance brands," said CEO Fabrizio Freda in a press release.

"With confidence in our continued ability to execute effectively and grow share in prestige beauty, while simultaneously making strategic investments in our business, we are raising our net sales and EPS guidance for the year."

The company sees 2019 full-year adjusted earnings per share in the range of $4.92 to $5, up from a previous range of $4.73 to $4.82. It expects third-quarter adjusted EPS in the range of $1.26 to $1.28. Analysts were expecting $1.24.

Estee Lauder was up 15% this year including Tuesday morning’s rally.

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Source: Business Insider