RBC Capital analysts provided their outlook on The Estée Lauder Companies Inc. (NYSE:EL) ahead of the company’s upcoming Q4 earnings, expecting adjusted EPS of $0.31, about in line with the Street estimate of $0.32.

While the analysts continue to believe The Estée Lauder is the best-managed company in their coverage, they are approaching the numbers with prudence given the ongoing COVID volatility in China. The analysts expect results to be driven by the US and Europe which have seen a resurgence of mobility and social use occasions. They expect a prudent guide for 2023, especially for H1/23, as China continues grappling with highly contagious variants against its zero COVID strategy.

The analysts estimate net sales growth of 8% for 2023, about in-line with the Street estimate, and adjusted operating margins of 19.8%, slightly below the Street estimate of 20.2%.