U.S. Movers: Estee Lauder, PayPal, Rambus

Scott Peters
04 Feb, 2025
New York City

Rambus Inc dropped 1% to $59.75 despite the digital electronics devices maker surpassing fourth quarter revenue and earnings expectations.

Revenue jumped to $161.1 million from $122.2 million, net income increased to $62.2 million from $58.5 million, and earnings per diluted share rose to 58 cents from 53 cents a year ago.

For the first quarter of 2025, the company estimated product revenue between $72 million and $78 million, licensing billing revenue between $59 million and $65 million, and contract and other revenue between $22 million and $28 million. 

in addition to solid sales from licensing billings, royalties, and contracts.

Estee Lauder Companies Inc dropped 7% to $77 after the beauty products maker posted lower sales for the second quarter of fiscal year 2025.

Net sales decreased 6% to $4.0 billion from $4.28 billion, net loss came in at $590 million compared to a profit of $313 million, and diluted net loss per share was $1.64 compared to positive earnings of 87 cents a year ago.

Capital expenditures decreased to $273 million from $527 million in the prior-year period primarily thanks to the prior-year payments relating to the manufacturing facility in Japan.

The company paid dividends of $366 million in the last quarter. 

Furthermore, Estee Lauder announced a quarterly cash dividend of 35 cents per share on its class A and class B common stock, payable on March 17 to shareholders on record as of February 28.

For fiscal third quarter 2025, the company estimated non-GAAP earnings per share between 24 cents to 34 cents in constant currency, compared to 97 cents a year ago.

During the second quarter, Estee Lauder launched its products on the U.K. TikTok shop and in Amazon’s U.S. Premium Beauty store.

The company expanded geographically in Thailand, with an expected February expansion in mainland China as well.

In December, Estee Lauder opened a new BioTech Hub in Belgium to further accelerate its biotechnology innovations.

Overall, fragrance distribution expanded with over 20 new stores opened globally during the quarter.

PayPal Holdings Inc dropped 4.1% to $83.83 after the online payments company posted lower net income for the fourth quarter ending in December.

Revenue increased to $8.37 billion from $8.03 billion, net income declined to $1.12 billion from $1.40 billion, and earnings per diluted share fell to $1.11 from $1.29 a year ago.

For fiscal first quarter 2025, the company estimated GAAP earnings per share between $1.11 and $1.13, compared to 83 cents a year earlier.

PayPal announced a new $15 billion share buyback program, and expects to make around $6 billion in repurchases in 2025.

During the fourth quarter, volume on the company’s Venmo App jumped 10% from a year earlier, as DoorDash, Starbucks and Ticketmaster are among businesses now accepting the app as one way that consumers can pay.