L’Oreal Stock Rises to Four-Year High on Sales, Forecast
L’Oreal SA (OR), the world’s largest cosmetics maker, surged to a four-year high in Paris trading after reporting quarterly sales that beat analysts’ estimates and saying trends are favorable for all its brands.
The shares climbed as much as 3.71 euros, or 4.1 percent, to 94.80 euros, the highest intraday price since Jan. 8 2008. The stock traded 3 percent higher at 94.08 euros as of 9:15 a.m. and was the best performer on the benchmark CAC 40 index. (CAC)
First-quarter revenue climbed 9.4 percent to 5.64 billion euros ($7.44 billion), the Paris-based maker of Garnier shampoo said after markets closed yesterday. The average of 10 analysts’ estimates compiled by Bloomberg was 5.53 billion euros. Sales grew in all regions, led by the Asia Pacific, while the luxury division was L’Oreal’s best performing unit.
“The worldwide cosmetics market remains strong and trends are favorable for all brands,” L’Oreal Chairman and Chief Executive Officer Jean-Paul Agon said yesterday.
While the economic environment “remains uncertain, the first three months have reinforced our confidence in the group’s ability to outperform the market in 2012, to strengthen its global positions and to achieve another year of growth in both sales and profits,” he said.
L’Oreal’s 11 percent increase in like-for-like sales in so- called New Markets was a “pleasant surprise,” Andrew Wood, an analyst at Sanford C. Bernstein, wrote yesterday in a note to clients. He has an underperform rating on the stock.
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