10:34 AM EDT, 08/20/2024 (MT Newswires) -- Estee Lauder ( EL ) reported mixed fiscal Q4 results with profit surpassing expectations and guidance for fiscal 2025 below market consensus on conservative estimates for growth, particularly in China, RBC Capital Markets said in a note Tuesday.

The company's strong performance in Europe, the Middle East and Africa, especially in the travel retail sector drove the adjusted EPS ahead of consensus and offset weaker results in the Americas and the Asia-Pacific, RBC analysts, including Nik Modi, said.

The analysts also said that Mainland China remains a weak spot for Estee Lauder ( EL ) amid ongoing declines in sales due to low consumer sentiment and a softening prestige beauty market.

In Hainan, the company plans to slightly reduce inventory levels in fiscal Q1, which have increased due to significant declines in beauty retail sales and low conversion rates, according to the note.

RBC reiterated its outperform rating on Estee Lauder's ( EL ) stock and kept the price target at $131.

Shares of the company fell over 4% in recent trading.

Price: 88.71, Change: -4.14, Percent Change: -4.46