Consumer Staples Earnings to Watch This Week: EL, NWL, HSY, COTY, PM

Core Insights - The Consumer Staples sector is currently underperforming, ranking among the bottom 32% of Zacks classified sectors, with earnings expected to decline in the upcoming reports [2][3]. Industry Overview - U.S. consumer stocks are facing challenges such as weakening consumer confidence, persistent inflation, and pressure on discretionary spending, which are squeezing margins and making earnings growth difficult [3]. - Global demand uncertainty, inflationary pressures, weather volatility, and geopolitical concerns are further constraining margins and limiting near-term earnings growth [3]. Earnings Performance - As of now, 26.7% of Consumer Staples companies have reported earnings, with a year-over-year earnings decline of 3.7% and a revenue drop of 1.1% [5]. - For the December quarter, earnings are expected to decline by 2.4% year-over-year, while revenues are projected to rise by 2.4% [6]. Company-Specific Insights - Estee Lauder Companies Inc. (EL): Expected to report revenue of $4.22 billion, a 5.3% increase year-over-year, with earnings estimated at 83 cents per share, reflecting a 33.9% growth [8]. The company is benefiting from its Profit Recovery and Growth Plan [9]. - Hershey Company (HSY): Anticipated to report revenues of $3 billion, a 4% increase, but earnings are expected to decline by nearly 48% to $1.40 per share [10][11]. Continued demand in its core portfolio is expected to support results despite margin pressures [11]. - Newell Brands Inc. (NWL): Expected to see a revenue decline to $1.89 billion, a 3.3% drop, while earnings are projected to grow by 12.5% to 18 cents per share [12]. The company is facing challenges from inflation and geopolitical volatility [12]. - Coty Inc. (COTY): Projected to report revenues of $1.66 billion, a slight decline of 0.3%, with earnings expected to increase by 63.6% to 18 cents per share [13]. The company is experiencing revenue constraints due to a highly promotional market and tariff pressures [13]. - Philip Morris International Inc. (PM): Expected to report revenues of $10.4 billion, a 7.3% increase, with earnings stable at $1.67 per share, reflecting a 7.7% growth [14]. The company is benefiting from strong pricing power and a growing smoke-free product portfolio [14].