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Estee Lauder Shares Plunge as Forecast Misses the Mark (EL)

Cosmetics and fragrance maker The Estee Lauder Companies Inc. ( EL ) on Monday posted fiscal fourth quarter earnings that matched analyst expectations, but offered a 2012 forecast that fell short of Wall Street's view.

The New York-based company reported fiscal fourth quarter net income of $41.1 million, or 20 cents per share, compared with $23.9 million, or 12 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 24 cents per share.

Revenue rose 12% from last year to $2.06 billion.

On average, Wall Street analysts expected a matching profit of 24 cents per share, on lower revenue of $2.02 billion.

Looking ahead, the company forecast full-year 2012 earnings to range from $4 to $4.20 per share, which would miss analyst expectations of $4.36 per share.

Estee Lauder shares fell $6.35, or -6.3%, in premarket trading Monday.

The Bottom Line

Shares of Estee Lauder ( EL ) have a .74% dividend yield, based on Friday's closing stock price of $100.88. The stock has technical support in the $87-$94 price area. If the stock can firm up, we see overhead resistance around the all-time high levels of $107-$108 price levels.

The Estee Lauder Companies Inc. ( EL ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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