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Factors to Consider as Coty (COTY) Gears Up for Q1 Earnings
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Coty Inc. (COTY - Free Report) is likely to display year-over-year growth in the top line, when it reports first-quarter fiscal 2022 earnings on Nov 8. The Zacks Consensus Estimate for revenues is pegged at $1,359 million, suggesting a rise of 20.9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has risen by a penny over the past 30 days to 3 cents per share, which, however, indicates a slump of 72.7% from the figure reported in the prior-year period. In the last reported quarter, the company’s bottom line lagged the Zacks Consensus Estimate by a wide margin.
Coty has been benefiting from its focus on its six strategic priorities. These include stabilizing the Consumer Beauty make-up brands and mass fragrances; enhancing luxury fragrances and setting up Coty as a core player in prestige make-up; establishing a skincare portfolio in prestige and mass channels; strengthening the e-commerce and Direct-to-Consumer (DTC) capabilities; growing presence in China via Prestige and certain Consumer Beauty brands; as well as setting Coty as an industry leader in sustainability.
Certainly, the company’s e-commerce business has been performing brilliantly for a while now. Also, focus on enhancing portfolio through strategic partnerships and acquisitions have been working well for COTY.
At the beginning of first-quarter fiscal 2022, Coty saw momentum in the fragrance market across the United States and China. The company also witnessed some recovery in the EMEA region as well as broader color cosmetics. Along with these, an impressive product launch calendar has been driving sales. Management, in its last earnings call, highlighted that the company saw double-digit growth during July as well as August (till 26) period. It projects fiscal first-quarter LFL sales growth in the high-teens percentage.
That said, Coty has been seeing a volatile environment across markets, stemming from the pandemic-induced restrictions, reduced store traffic and challenges in social mobility. Moreover, the company has been witnessing softness in international travel due to the pandemic.
What the Zacks Model Unveils
Our proven model predicts 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 (Hold) and has an Earnings ESP of +50.00%.
Other Stocks With Favorable Combinations
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season.
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Factors to Consider as Coty (COTY) Gears Up for Q1 Earnings
Coty Inc. (COTY - Free Report) is likely to display year-over-year growth in the top line, when it reports first-quarter fiscal 2022 earnings on Nov 8. The Zacks Consensus Estimate for revenues is pegged at $1,359 million, suggesting a rise of 20.9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has risen by a penny over the past 30 days to 3 cents per share, which, however, indicates a slump of 72.7% from the figure reported in the prior-year period. In the last reported quarter, the company’s bottom line lagged the Zacks Consensus Estimate by a wide margin.
Coty Price, Consensus and EPS Surprise
Coty price-consensus-eps-surprise-chart | Coty Quote
Key Factors to Note
Coty has been benefiting from its focus on its six strategic priorities. These include stabilizing the Consumer Beauty make-up brands and mass fragrances; enhancing luxury fragrances and setting up Coty as a core player in prestige make-up; establishing a skincare portfolio in prestige and mass channels; strengthening the e-commerce and Direct-to-Consumer (DTC) capabilities; growing presence in China via Prestige and certain Consumer Beauty brands; as well as setting Coty as an industry leader in sustainability.
Certainly, the company’s e-commerce business has been performing brilliantly for a while now. Also, focus on enhancing portfolio through strategic partnerships and acquisitions have been working well for COTY.
At the beginning of first-quarter fiscal 2022, Coty saw momentum in the fragrance market across the United States and China. The company also witnessed some recovery in the EMEA region as well as broader color cosmetics. Along with these, an impressive product launch calendar has been driving sales. Management, in its last earnings call, highlighted that the company saw double-digit growth during July as well as August (till 26) period. It projects fiscal first-quarter LFL sales growth in the high-teens percentage.
That said, Coty has been seeing a volatile environment across markets, stemming from the pandemic-induced restrictions, reduced store traffic and challenges in social mobility. Moreover, the company has been witnessing softness in international travel due to the pandemic.
What the Zacks Model Unveils
Our proven model predicts 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 (Hold) and has an Earnings ESP of +50.00%.
Other Stocks With Favorable Combinations
Here are some other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season.
Tyson Foods (TSN - Free Report) has an Earnings ESP of +2.51% and sports a Zacks Rank #1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
US Foods (USFD - Free Report) has an Earnings ESP of +5.26% and carries a Zacks Rank of 3, currently.
Hormel Foods (HRL - Free Report) has an Earnings ESP of +1.59% and currently holds a Zacks Rank #3.