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Coty (COTY) Q4 Earnings Coming Up: Things to Keep in Mind
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Coty Inc. (COTY - Free Report) is likely to register top-and bottom-line growth, when it reports fourth-quarter fiscal 2022 earnings on Aug 25. The Zacks Consensus Estimate for revenues is pegged at $1,151 million, suggesting a rise of 8.4% from the prior-year quarter’s reported figure. For fiscal 2022, the company’s revenues are pegged at $5,288 million, indicating growth of 14.2% from the year-ago period’s level.
The Zacks Consensus Estimate for the bottom line is unchanged in the past 30 days at a loss of 1 cent per share, indicating an improvement from a loss of 9 cents reported in the year-ago quarter. The consensus mark for fiscal 2022 earnings is pegged at 27 cents per share, projecting 35% growth from the year-ago period’s reported figure.
We expect fiscal fourth-quarter net revenues to be up 10.2% year over year to $1,170.3 million and the bottom line to improve 76.5% to a loss of 2 cents a share. For fiscal 2022, we anticipate net revenues to grow 14.6% to $5,306 million and earnings to be up 29.4% to 26 cents a share.
The cosmetics company has a trailing four-quarter earnings surprise of 44.6%, on average. In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by 50%.
Coty is benefiting from its six strategic pillars that include 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 among others. The company’s focus on strategic partnerships to enhance its brand portfolio bodes well. Management is committed to its savings initiatives to counter inflationary headwinds.
Considering the projected impact of exiting operations in Russia, including local Travel Retail and the near-term COVID restrictions lockdowns in China on the fiscal fourth-quarter results, management anticipates fiscal 2022 LFL sales at the upper end of its guidance of low-to-mid teens percentage growth. Fiscal 2022 adjusted earnings per share (EPS) are expected in the range of 23-27 cents, indicating growth from 20 cents per share reported in fiscal 2022.
Coty has been grappling with increased inflation and supply chain-related challenges. Although management is mitigating the impact of inflation via continued favorable mix gains and pricing actions, it expects inflationary pressures to have stepped up in the fiscal fourth quarter. Escalated inflationary headwinds are likely to have restricted year-over-year gross margin expansion in the to-be-reported quarter. In addition, adverse currency movements might have been a hindrance to the company’s performance.
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 carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.
Chewy (CHWY - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank #1. CHWY is likely to register a bottom-line decrease from the previous fiscal year’s quarterly reading when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly loss per share of 12 cents indicates deterioration from the year-earlier fiscal quarter’s loss of 4 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chewy's top line is expected to rise from the last fiscal year’s reading. The Zacks Consensus Estimate for quarterly revenues stands at $2.50 billion, which indicates an improvement of 16% from the figure reported in the prior-year fiscal quarter. CHWY has a trailing four-quarter earnings surprise of 4.1%, on average.
General Mills (GIS - Free Report) currently has an Earnings ESP of +3.63% and a Zacks Rank #2. GIS is likely to register top-line growth when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the company’s quarterly revenues is pegged at $4.62 billion, which suggests growth of 1.7% from the figure reported in the prior-year quarter.
However, the Zacks Consensus Estimate for General Mills’ quarterly earnings has moved down by a penny in the past 30 days to 98 cents per share, suggesting a decrease of 1% from the year-ago quarter’s reported number. GIS has delivered an earnings beat of 6.5%, on average, in the trailing four quarters.
Dollar General (DG - Free Report) currently has an Earnings ESP of +1.04% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has risen by a penny over the past 30 days to $2.93 per share. The consensus mark for DG’s earnings per share suggests 8.9% growth from the year-ago quarter’s reported number.
Dollar General’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.39 billion, which suggests a rise of 8.6% from the figure reported in the prior-year quarter. DG delivered an earnings beat of 2.8%, on average, in the trailing four quarters.
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Coty (COTY) Q4 Earnings Coming Up: Things to Keep in Mind
Coty Inc. (COTY - Free Report) is likely to register top-and bottom-line growth, when it reports fourth-quarter fiscal 2022 earnings on Aug 25. The Zacks Consensus Estimate for revenues is pegged at $1,151 million, suggesting a rise of 8.4% from the prior-year quarter’s reported figure. For fiscal 2022, the company’s revenues are pegged at $5,288 million, indicating growth of 14.2% from the year-ago period’s level.
The Zacks Consensus Estimate for the bottom line is unchanged in the past 30 days at a loss of 1 cent per share, indicating an improvement from a loss of 9 cents reported in the year-ago quarter. The consensus mark for fiscal 2022 earnings is pegged at 27 cents per share, projecting 35% growth from the year-ago period’s reported figure.
We expect fiscal fourth-quarter net revenues to be up 10.2% year over year to $1,170.3 million and the bottom line to improve 76.5% to a loss of 2 cents a share. For fiscal 2022, we anticipate net revenues to grow 14.6% to $5,306 million and earnings to be up 29.4% to 26 cents a share.
The cosmetics company has a trailing four-quarter earnings surprise of 44.6%, on average. In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by 50%.
Coty Price and EPS Surprise
Coty price-eps-surprise | Coty Quote
Things To Note
Coty is benefiting from its six strategic pillars that include 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 among others. The company’s focus on strategic partnerships to enhance its brand portfolio bodes well. Management is committed to its savings initiatives to counter inflationary headwinds.
Considering the projected impact of exiting operations in Russia, including local Travel Retail and the near-term COVID restrictions lockdowns in China on the fiscal fourth-quarter results, management anticipates fiscal 2022 LFL sales at the upper end of its guidance of low-to-mid teens percentage growth. Fiscal 2022 adjusted earnings per share (EPS) are expected in the range of 23-27 cents, indicating growth from 20 cents per share reported in fiscal 2022.
Coty has been grappling with increased inflation and supply chain-related challenges. Although management is mitigating the impact of inflation via continued favorable mix gains and pricing actions, it expects inflationary pressures to have stepped up in the fiscal fourth quarter. Escalated inflationary headwinds are likely to have restricted year-over-year gross margin expansion in the to-be-reported quarter. In addition, adverse currency movements might have been a hindrance to the company’s performance.
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 carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.
Stocks With Favorable Combinations
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.
Chewy (CHWY - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank #1. CHWY is likely to register a bottom-line decrease from the previous fiscal year’s quarterly reading when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly loss per share of 12 cents indicates deterioration from the year-earlier fiscal quarter’s loss of 4 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chewy's top line is expected to rise from the last fiscal year’s reading. The Zacks Consensus Estimate for quarterly revenues stands at $2.50 billion, which indicates an improvement of 16% from the figure reported in the prior-year fiscal quarter. CHWY has a trailing four-quarter earnings surprise of 4.1%, on average.
General Mills (GIS - Free Report) currently has an Earnings ESP of +3.63% and a Zacks Rank #2. GIS is likely to register top-line growth when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the company’s quarterly revenues is pegged at $4.62 billion, which suggests growth of 1.7% from the figure reported in the prior-year quarter.
However, the Zacks Consensus Estimate for General Mills’ quarterly earnings has moved down by a penny in the past 30 days to 98 cents per share, suggesting a decrease of 1% from the year-ago quarter’s reported number. GIS has delivered an earnings beat of 6.5%, on average, in the trailing four quarters.
Dollar General (DG - Free Report) currently has an Earnings ESP of +1.04% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has risen by a penny over the past 30 days to $2.93 per share. The consensus mark for DG’s earnings per share suggests 8.9% growth from the year-ago quarter’s reported number.
Dollar General’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.39 billion, which suggests a rise of 8.6% from the figure reported in the prior-year quarter. DG delivered an earnings beat of 2.8%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.