Estee Lauder investors shrug off coronavirus-driven forecast cut as stock soars on earnings beat
revealed the hit it would take to growth as a result of the Wuhan coronavirus, it appeared that the market had already reconciled itself to that fear.stronger revenue and earnings-per-share numbers than the Street expected.
Revenue for the company's second fiscal quarter was $4.624 billion — analysts had expected only $3.845 billion, according to a Bloomberg survey. Adjusted earnings per share were $2.110, a beat over the $1.596 analysts predicted. That good news came alongside confirmation from the company that it expects coronavirus-related dips in demand to eat into earnings in the third quarter. Estee Lauder projected earnings per common share, excluding certain charges, would be between $5.60 and $5.70 for the fiscal year, a reduction from the $5.85 to $5.93 band it offered last quarter. It is the second quarter running that the company has cut that metric.
Coronavirus is a fear Wall Street has been pricing into Estee Lauder stock since the outbreak began. Estee Lauder is tied for first as the to coronavirus risk, with 17% of revenue exposed, according to a January Credit Suisse note. The stock fell around 11% since January 17, which many analysts consider to be the day the outbreak began. It's pared those losses this week, as broader market concern around
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