Estee Lauder Shines!

"Armchair Trader" Members Make 100% Profit On This Options Trade!

by Ian Harvey

August 20, 2018




Estee Lauder Companies Inc (NYSE: EL)

Estee Lauder shines brightly after reporting its fiscal fourth quarter results. An option call trade was recommended to “Armchair Trader” Members on Friday, August 17, 2018, based on recorded strong streaks of surpassing earnings estimates; having already topped estimates by 7.45%, on average, in the last two quarters.



The Trade……

…….from…… “Armchair Trader Series” Recommendations - Week Beginning Monday, August 13, 2018

The Details……..

Estee Lauder Companies Inc (NYSE: EL), a manufacturer and marketer of skin care, makeup, fragrance, and hair care products worldwide, will release fourth-quarter fiscal 2018 results on Monday, August 20, before the market opens.

Management expects growth opportunities in the global prestige beauty industry, which is anticipated to grow 6-7% in fiscal 2018. This is likely to drive fiscal fourth-quarter results.

Also, management expects sales to grow approximately 8-9% (in constant currency) for the impending quarter. The Consensus Estimate for revenues is pegged at $3,260 million, depicting a rise of 12.6% from the prior-year quarter's level.

As well, management expects earnings in the fourth quarter in the range of 48-52 cents, including a 7 cents benefit from currency. The Consensus Estimate for earnings is currently pegged at 56 cents, reflecting a 9.8% increase from the year-ago quarter’s tally.

For the last reported quarter, Estee Lauder came out with earnings of $1.17 per share versus the Consensus Estimate of $1.07 per share, representing a surprise of 9.35%. For the previous quarter, the company was expected to post earnings of $1.44 per share and it actually produced earnings of $1.52 per share, delivering a surprise of 5.56%.……continue reading…..

The Trade……..

** OPTION TRADE: Buy EL SEPT 21 2018 135.000 CALL at approximately $4.00.

Place a pre-determined sell at $8.00.

Also include a protective stop loss of $1.60.

Earnings Report and Movement Expectations……

This report by Estee Lauder marked the 16th straight quarter of earnings beat, while sales surpassed the same for the sixth consecutive period. Needless to say, the splendid performance of this cosmetics giant has helped its shares increase 27.6% in the past year, outperforming the industry's rise of 10.6%.

Estee Lauder's earnings report for its fiscal fourth quarter of the year includes earnings per share of 61 cents. This is up from the company's earnings per share of 51 cents from the same time last year; also beating Wall Street's earnings per share estimate of 56 cents for the quarter.

Net income reported by Estee Lauder for its fiscal fourth quarter of 2018 came in at $188 million. This is a drop from the maker of beauty products net income of $230 million from its fiscal fourth quarter of 2017.

During its fiscal fourth quarter of the year, Estee Lauder reported operating income of $277 million. This is better than the company's operating income of $230 million that was reported in the same period of the year prior.

Estee Lauder also reported revenue of $3.30 billion for its fiscal fourth quarter of 2018. This is an improvement over the company's revenue of $2.89 billion that was reported in its fiscal fourth quarter of the previous year; again coming in above analysts' revenue estimate of $3.25 billion for the period.

Moving Forward…..

Management is impressed with its performance in fiscal 2018 as a whole, fueled by growth in most of the segments and brands; which has aided the company in boosting its market share. As well, Estee Lauder expects continued growth opportunities in the global prestige beauty industry; expected to grow 5-6% in fiscal 2019.

The company is also on track with the implementation of the Leading Beauty Forward initiative, directed toward better-management of costs and operations.

For fiscal 2019, the company expects net sales to grow 4-5%, including negative impacts of 2% from currency fluctuations and 1% from the adoption of new accounting standard.

Net sales for the first quarter of fiscal 2019 are expected to rise in the range of 5-6%. Further, adjusted EPS for the quarter is projected in the range of $1.18-1.22.

The Profits.....

So, for “Armchair Trader” members, who managed to execute this trade recommended by Stock Options Made Easy; and had an exit price already established, profits of  100% were made.

Entering the option trade at a cost of $4.50 or less; and the sell price on the option was set at $9.00; a profit of 100% was made within 24 hours (excluding the weekend). The option trade price went as high as $10.50 during Monday’s trading. Therefore, one options contract would provide a profit of $450.00; or 100% Profit.



As you would have by now realized, some of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but in this case the trade was based on the earnings prediction outcome; and during earnings season this strategy has been very profitable.

Sometimes it is our approach to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use – such as found with the “Earnings Predictions Program”. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.

Strategies to Consider……

"When To Exit A Trade Based On Earnings?"

It is also worth considering, when options trading earnings reports – “Do we exit on already existing profits or leave the companies to report their earnings and hope for bigger profit?” .....READ MORE.....


"Trading Capital Management" is a key component of your trading strategy. The strategy, on which we base our trades to achieve maximum profit, and to minimize loss, is contingent on using an equal amount of money for each trade.……continue reading this article……

Our proven track record says it all!!

Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.

If you not a member and interested in being part of this profitable action just CLICK HERE.

Other Membership Options…….

If you interested in "Earnings Predictions" just click here……

or "Mentorship Program" here....

Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.

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