11:38 AM EDT, 10/29/2024 (MT Newswires) -- Estee Lauder's ( EL ) fiscal Q1 results are expected to meet its expectations amid a "difficult" business backdrop in China, RBC Capital Markets said Tuesday.

The company is scheduled to report fiscal Q1 results Thursday. RBC projects adjusted earnings at $0.10 a share on revenue of about $3.4 billion. Wall Street is looking for $0.09 and $3.38 billion, respectively, according to RBC.

"We think that EL will be able to hit expectations this quarter and deliver within its guided F1Q'25 range," the report said. "While the environment in China remains difficult, as expected, our analysis of recent competitor commentary leads us to believe that EL's guidance bakes in current trends."

Estee Lauder ( EL ) is reportedly expected to name Stephane de La Faverie as its new chief executive, according to the note. The move "aligns with our long-held view that he is the best fit for the role," RBC said.

"Overall, we believe that in-line results and reiterated guidance will result in a positive stock reaction," the report said.

RBC has an outperform rating on the stock, with a $131 price target.

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