Back to top

Image: Bigstock

COTY to Report Q1 Earnings: Here's What You Should Note

Read MoreHide Full Article

Coty Inc. (COTY - Free Report) is likely to register top-and bottom-line growth when it reports first-quarter fiscal 2023 earnings on Nov 8. The Zacks Consensus Estimate for revenues is pegged at $1,379 million, suggesting a rise of 0.5% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for quarterly earnings has moved up by a penny in the past 30 days to 11 cents per share, indicating an improvement from 8 cents reported in the year-ago quarter. The cosmetics company has a trailing four-quarter earnings surprise of 64.6%, on average. In the last reported quarter, the company’s bottom line was in line with the Zacks Consensus Estimate.

We expect fiscal first-quarter net revenues to be up 16% year over year to $1,393.4 million and the bottom line to grow 28.8% to 10 cents a share.

Coty Price and EPS Surprise

 

Coty Price and EPS Surprise

Coty price-eps-surprise | Coty Quote

 

Things To Know

Coty has been benefiting from its six strategic pillars — stabilizing Consumer Beauty make-up brands and mass fragrances; accelerating luxury fragrances and setting up Coty as a core player in prestige make-up; establishing a skincare portfolio in prestige and mass channels; strengthening e-commerce and Direct-to-Consumer (DTC) capabilities. The company’s focus on strategic partnerships to enhance its brand portfolio bodes well.

In a recent press release, Coty highlighted that it is witnessing solid beauty demand in the near term. The company expects first-quarter fiscal 2023 LFL sales growth of 8-9%, adjusting for the impact of the Russia exit. The upside is supported by Prestige and Consumer Beauty performance and strength in Europe, the Americas and Global Travel Retail. Management noted that it expects solid sales momentum to generate stronger gross margins, despite persistent inflationary pressures.

Coty has been witnessing continued dynamic inflation and a supply chain environment. Due to its exposure to international markets, the company is vulnerable to currency fluctuations. The persistence of such trends is likely to have put pressure on the company’s profits in the first quarter of fiscal 2023.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Coty this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Coty currently carries a Zacks Rank #3 and has an Earnings ESP of -10.89%.

Stocks With Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings this season.

Darling Ingredients Inc. (DAR - Free Report) currently has an Earnings ESP of +0.23% and a Zacks Rank #2. The company is likely to register bottom-line growth when it reports third-quarter 2022 earnings. The Zacks Consensus Estimate for the quarterly earnings per share (EPS) of $1.42 suggests a dip of 61.4% from the year-ago quarter.  

Darling Ingredients’ top line is also anticipated to have increased year over year. The consensus mark for DAR’s revenues is pegged at $1.68 billion, indicating an increase of 41.9% from the figure reported in the year-ago quarter. CPB has a trailing four-quarter earnings surprise of 3.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

Campbell Soup Company (CPB - Free Report) currently has an Earnings ESP of +4.30% and a Zacks Rank #3. The company is expected to register a decrease in the bottom line when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for the quarterly earnings per share of 84 cents suggests a dip of 5.6% from the year-ago quarter.  

Campbell Soup’s top line is anticipated to have increased year over year. The consensus mark for CPB’s revenues is pegged at $2.42 billion, indicating an increase of 8.1% from the figure reported in the year-ago quarter. CPB has a trailing four-quarter earnings surprise of 6.5%, on average.

The J. M. Smucker Company (SJM - Free Report) currently has an Earnings ESP of +1.06% and a Zacks Rank #3. The company is expected to register a decrease in the bottom line when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for the quarterly earnings per share of $2.17 suggests a dip of 10.7% from the year-ago quarter.  

Smucker’s top line is anticipated to have increased year over year. The consensus mark for SJM’s revenues is pegged at $2.16 billion, indicating an increase of 5.2% from the figure reported in the year-ago quarter. Smucker has a trailing four-quarter earnings surprise of 20.8%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in