Estee Lauder (NYSE: EL) reported Q3 EPS of $0.76, $0.15 better than the analyst estimate of $0.61. Revenue for the quarter came in at $2.66 billion versus the consensus estimate of $2.66 billion.

Fabrizio Freda, President and Chief Executive Officer, said, “On the strength of our unique brands and agile execution, we posted constant currency sales gains in all our regions and most of our product categories and channels. Our results this quarter were again highlighted by strong top line growth in our international business, driven by higher sales in virtually every market we serve. We are particularly pleased with the acceleration of both our e-commerce business and social media initiatives, which are helping to drive brand engagement around the world.

“Our flexible business model, reflecting disciplined resource allocation and improved expense leverage, helped achieve bottom line results ahead of our forecast. We are committed to continuing to target investment spending behind our brands and our greatest opportunities to foster global growth. In view of our performance to date and our positive outlook for the balance of the year, we are reiterating our expectation for adjusted constant currency sales growth of 7% to 8% and earnings per share growth of 10% to 12%, before charges, for the 2016 fiscal year.”

2016 GUIDANCE:

Estee Lauder sees FY2016 EPS of $3.00-$3.06, or $3.07-$3.15 ex-items, which may note compare to the consensus of $3.15.

• Net sales are forecasted to increase between 4% and 5% versus the prior-year period.
• Reflecting the strength of the U.S. dollar, foreign currency translation is expected to negatively impact sales by approximately 5%.
• Net sales are forecasted to grow between 9% and 10% in constant currency.
• The accelerated retailer orders will affect the comparison between the fiscal 2016 and fiscal 2015 full year sales by approximately 2%.
• Net sales, adjusting for the effect of the accelerated retailer orders, are forecasted to grow between 7% and 8% in constant currency.
• The Company’s recent acquisitions are forecasted to contribute approximately 50 basis points to the Company’s overall sales growth. Acquisitions are estimated to dilute earnings per share by approximately $.05.
• Diluted net earnings per common share, including charges associated with GTI restructuring activities, are projected to be between $3.00 and $3.07.
• The Company expects to take charges associated with GTI restructuring activities in fiscal 2016 of between $40 million to $50 million, equal to $.07 to $.09 per diluted common share.
• The full year fiscal 2016 forecast does not include charges related to the Leading Beauty Forward initiative.
• Diluted net earnings per share before charges associated with restructuring activities are projected to be between $3.09 to $3.14. This forecast is two cents higher than the Company’s previously issued guidance, reflecting a slight moderation in foreign currency translation.
• The approximate 5% negative currency impact on the sales growth equates to about $.27 of earnings per share. On a constant currency basis and adjusting for charges and the effect of the accelerated retailer orders, diluted earnings per share are expected to grow between 10% and 12%.

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