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Factors to Decide the Fate of Coty (COTY) in Q2 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 second-quarter fiscal 2022 earnings on Feb 8. The Zacks Consensus Estimate for revenues is pegged at $1,611 million, suggesting a rise of 13.8% from the prior-year quarter’s reported figure.
However, Coty’s bottom line is likely to decline year over year in the fiscal second quarter. The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 12 cents per share, indicating a decline of 29.4% from the year-ago quarter’s reported number. The cosmetics company has a trailing four-quarter earnings surprise of 66.4%, on average. In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by a wide margin.
Coty has been benefiting from a solid e-commerce business for a while. In this regard, the company is on track to strengthen its e-commerce and direct-to-consumer capabilities with a focus on digital-first omni-channel. Portfolio enhancements through strategic partnerships and acquisitions are also yielding. It is also gaining from a 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 as well as establishing a skincare portfolio in prestige and mass channels among others. These factors are likely to have benefited the quarterly performance in the to-be-reported quarter.
However, Coty sees a volatile environment across markets stemming from the pandemic. Industry-wide headwinds such as inflationary pressures, supply-chain bottlenecks and shortages continue to be headwinds. The persistence of such trends is likely to have affected the company’s performance in the fiscal second quarter.
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 and has an Earnings ESP of +37.14%.
Some More Stocks With Favorable Combinations
Here are some more companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat.
Hershey (HSY - Free Report) currently has an Earnings ESP of +0.80% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports fourth-quarter 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has moved up by a penny in the past seven days to $2.04 per share, calling for a 6.3% rise from the year-ago quarter’s reported number.
Hershey’s top line is also expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.41 billion, suggesting a rise of 5% from the figure reported in the prior-year quarter. HSY delivered an earnings beat of 4.3%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hormel Foods (HRL - Free Report) currently has an Earnings ESP of +1.14% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports first-quarter fiscal 2022 results. The consensus mark for HRL's quarterly revenues is pegged at $2.87 billion, which suggests a rise of 16.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate has moved down 8.3% to 44 cents per share in the past 30 days. The consensus estimate indicates 7.3% growth from 41 cents reported in the year-ago quarter. HRL has delivered an earnings beat of 1.8%, on average, in the trailing four quarters.
Service Corporation International (SCI - Free Report) has an Earnings ESP of +17.39% and a Zacks Rank #3. Service Corporation is anticipated to register growth in the top line when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.01billion, indicating a rise of 4.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Service Corporation’s bottom line has increased 11.1% in the past 30 days to $1.00 per share. The consensus estimate suggests a drop of 11.5% from the year-ago quarter’s reported figure. SCI has delivered an earnings beat of 45.6%, on average, in the trailing four quarters.
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Factors to Decide the Fate of Coty (COTY) in Q2 Earnings
Coty Inc. (COTY - Free Report) is likely to display year-over-year growth in the top line, when it reports second-quarter fiscal 2022 earnings on Feb 8. The Zacks Consensus Estimate for revenues is pegged at $1,611 million, suggesting a rise of 13.8% from the prior-year quarter’s reported figure.
However, Coty’s bottom line is likely to decline year over year in the fiscal second quarter. The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 12 cents per share, indicating a decline of 29.4% from the year-ago quarter’s reported number. The cosmetics company has a trailing four-quarter earnings surprise of 66.4%, on average. In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by a wide margin.
Coty Price, Consensus and EPS Surprise
Coty price-consensus-eps-surprise-chart | Coty Quote
Things To Note
Coty has been benefiting from a solid e-commerce business for a while. In this regard, the company is on track to strengthen its e-commerce and direct-to-consumer capabilities with a focus on digital-first omni-channel. Portfolio enhancements through strategic partnerships and acquisitions are also yielding. It is also gaining from a 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 as well as establishing a skincare portfolio in prestige and mass channels among others. These factors are likely to have benefited the quarterly performance in the to-be-reported quarter.
However, Coty sees a volatile environment across markets stemming from the pandemic. Industry-wide headwinds such as inflationary pressures, supply-chain bottlenecks and shortages continue to be headwinds. The persistence of such trends is likely to have affected the company’s performance in the fiscal second quarter.
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 and has an Earnings ESP of +37.14%.
Some More Stocks With Favorable Combinations
Here are some more companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat.
Hershey (HSY - Free Report) currently has an Earnings ESP of +0.80% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports fourth-quarter 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has moved up by a penny in the past seven days to $2.04 per share, calling for a 6.3% rise from the year-ago quarter’s reported number.
Hershey’s top line is also expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.41 billion, suggesting a rise of 5% from the figure reported in the prior-year quarter. HSY delivered an earnings beat of 4.3%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hormel Foods (HRL - Free Report) currently has an Earnings ESP of +1.14% and a Zacks Rank of 3. The company is likely to register an increase in the top and bottom lines when it reports first-quarter fiscal 2022 results. The consensus mark for HRL's quarterly revenues is pegged at $2.87 billion, which suggests a rise of 16.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate has moved down 8.3% to 44 cents per share in the past 30 days. The consensus estimate indicates 7.3% growth from 41 cents reported in the year-ago quarter. HRL has delivered an earnings beat of 1.8%, on average, in the trailing four quarters.
Service Corporation International (SCI - Free Report) has an Earnings ESP of +17.39% and a Zacks Rank #3. Service Corporation is anticipated to register growth in the top line when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.01billion, indicating a rise of 4.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Service Corporation’s bottom line has increased 11.1% in the past 30 days to $1.00 per share. The consensus estimate suggests a drop of 11.5% from the year-ago quarter’s reported figure. SCI has delivered an earnings beat of 45.6%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.