Earnings Preview: Estee Lauder Inc.

By MAE ANDERSON

NEW YORK

Estee Lauder Inc., which makes cosmetics and skin care products, reports its fiscal fourth-quarter net income on Thursday.

WHAT TO WATCH FOR: Whether the improvement in sales of some higher-priced products that the company saw in its third quarter continues. Also, more than half of Estee Lauder's revenue comes from overseas, so analysts will compare how sales fared in different parts of the world.

WHY IT MATTERS: If sales of the company's higher-priced products rise for two quarters in a row, that would be a strong sign that higher-income consumers are picking up spending, particularly because Estee Lauder's products are not necessities.

Also, parsing Estee Lauder's revenue by geography is a good barometer of how consumer spending is faring globally.

WHAT'S EXPECTED: Analysts expect net income of 30 cents per share on revenue of $1.83 billion. Analyst estimates typically exclude one-time items.

LAST YEAR'S QUARTER: Estee Lauder earned 20 cents per share, excluding costs related to a restructuring program. Revenue declined 16 percent to $1.68 billion.