Aggressive Growth: Elizabeth Arden

Elizabeth Arden (RDEN) analysts keep raising estimates and are now expecting earnings to nearly double over the next 2 years.

Company Description

Elizabeth Arden makes beauty products and fragrances on a global scale. The company’s products are sold under the PREVAGE as well as a variety of celebrity and third party names.

Latest Surprise

On Aug 12 Elizabeth Arden reported fourth quarter and full year results. Sales for the year came in at $1.1 billion, up just over 3% since last year.

Earnings for the last quarter came in at 13 cents per share, easily ahead of the consensus, which was calling for just 1 penny. This marked Elizabeth Arden’s ninth consecutive earnings surprise.

Estimates Up

After the news was released, analysts raised full-year estimates for both fiscal 2011 and 2012. This year’s forecasts are averaging $1.20, up 7 cents. Next year’s projections jumped 22 cents, to $1.56.

In the recently completed fiscal year Elizabeth Arden earned 87 cents, so the annual growth rates are expected to be 37% this year and another 30% next year.


Shares of RDEN are trading with a slight premium, at 16 times forward estimates, but that is inline with the industry average. However, the price-to-sales ratio just under 0.5 is less than half of the norm for its peers.

The Chart

The stock is on a great run here, setting a new 52-week high this week. Look for shares to continue climbing as we make our way into earnings season next week.

ELIZABETH ARDEN (RDEN): Free Stock Analysis Report

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About Bill Wilton 56 Articles

Affiliation: Zacks Investment Research

Bill Wilton is the Growth Stock Strategist for He is also the Editor in charge of the market-beating Zacks Growth Trader service.

Visit: Zacks Investment Research

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