Beauty products company Estée Lauder (NYSE: EL) will be reporting results tomorrow before market open. Here’s what to look for.

Estée Lauder met analysts’ revenue expectations last quarter, reporting revenues of $3.36 billion, down 4.5% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Is Estée Lauder a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Estée Lauder’s revenue to decline 7.1% year on year to $3.98 billion, in line with the 7.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.32 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Estée Lauder has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Estée Lauder’s peers in the consumer staples segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Tyson Foods delivered year-on-year revenue growth of 2.3%, beating analysts’ expectations by 1%, and Cal-Maine reported revenues up 82.5%, topping estimates by 27%. Cal-Maine’s stock price was unchanged following the results.

Read our full analysis of Tyson Foods’s results here and Cal-Maine’s results here.

Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Band is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the consumer staples stocks have shown solid performance, the group has generally underpeformed, with share prices down 3.5% on average over the last month. Estée Lauder is up 13.4% during the same time and is heading into earnings with an average analyst price target of $84.71 (compared to the current share price of $81.49).

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