Share prices of cosmetics companies have displayed very little variance over the past week, moving almost in synchronization with the broader Samp;P Index. While Samp;P declinedÂ by 0.06% over the past week, shares of LâOrÃal (OTC:LRLCY) improved by +0.21% and shares of Avon Products (NYSE:AVP) declined by -0.41%. Revlon (NYSE:REV) shares grew by a comparatively higher rate ofÂ 4.24%, while EstÃe Lauder (NYSE:EL) stocks ended 1.57% higher. In this report, we present some of the key events currently impacting the stock price movements of four cosmetics companies.
Shares of LâOreal experienced an almost stable week ending at â¬137.50. The 52 week high and low for the stock has been â¬138.85 and â¬114.55, respectively.Â On November 27th, L’Oreal announced the project to end InnÃov, which is its joint venture with NestlÃ (Read Press Release). On December 5th, LâOreal announced its expansion in India by spreading out to more towns across the country.
We have a price estimate of $37 for LâOrÃal, about 9% higher than its current market price of $34. Our full FY14 revenue estimate stands at approximately â¬25.71 billion, compared to a consensus estimate of â¬22.5Â billion.
Estee Lauder shares had slight fluctuations in its weekly share price movement, followed by some insider trading. The 52 week high and low for the stock has been $77.66 and $63.63, respectively. The Securities and Exchange Commission (SEC) has divulged that Ronald S Lauder, Chairman, Clinique Labs LLC, 10% Owner of Estee Lauder Companies , unloaded 250,000 shares at an average price of $74.01 on December 3, 2014. This heavy selling has resulted in the shares to fall at $73.91 intraday. The SEC also disclosed that in an earlier transaction, Michael OHare, EVP-Global Human Resources of Estee Lauder Companies, unloaded 2,963 shares at an average price of $71.96. In November, Estee Lauder expanded its presence in sub-Saharan Africa by rolling out its MAC brand in Kenya.
We have a price estimate of $85 for EstÃe Lauder, about 15% higher than its current market price of $74. Our full CY14 (ending December 2014) revenue estimate stands at approximately $10.8 billion, compared to a consensus FY15 (ending June 2015) estimate of $10.9 billion. We expect non-GAAP earnings per share of $2.69 this fiscal year, compared to consensus estimates of $3.06.
Revlon has witnessed 35.98% year-to-date growth in its stock price. The company, on the back of its acquisition of The Colomer Group, witnessed margin expansions and a stronger performance in 2014. The 52 week high and low for the stock has been $35.26 and $22.12, respectively. In November, Revlon launched its first new tagline in 10 years: Love Is On.
We have a price estimate of $ 33 for Revlon, about 3% lower than its current market price of $34. Our full FY14 revenue estimate stands at approximately $1.93 billion, compared to a consensus FY14 estimate of $1.25 billion. We expect non-GAAP earnings per share of $2.19 this fiscal year, compared to consensus estimates of $1.25.
Avon has experienced a downhill trend in its stock price for this year. The stock price has declined by around 44% on a year-to-date basis. Recently taking into account the continued disappointing earnings fromÂ Avon Products and the delayed turnaround in its performance, we have downgraded ourÂ Trefis price estimate on Avon from $14.06 to $11.08 (Read our article here).
On November 26th, Zamansky LLC announced that the commencement of an investigation of Avon Product Inc.âs employee personal savings account plan for potential violations of the federal Employee Retirement Income Security Act. Avon Products has earned a âBBB-â credit rating from Morningstar. This implies that the company is at a moderate default risk.
We have a price estimate of $11 for Avon Products, about 9% higher than its current market price of $10. Our full FY14 revenue estimate stands at approximately $9.5 billion, compared to a consensus FY14 estimate of $8.9 billion. We expect non-GAAP earnings per share of $0.66 this fiscal year, compared to consensus estimates of $0.83.
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