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Coty (COTY) to Report Q2 Earnings: What's in the Offing?
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Coty Inc. (COTY - Free Report) is likely to register top and bottom line declines when it reports second-quarter fiscal 2023 earnings on Feb 8. The Zacks Consensus Estimate for revenues is pegged at $1,539 million, suggesting a decrease of 3.2% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Coty’s fiscal second-quarter bottom line has remained unchanged in the past 30 days at 15 cents per share. The projection indicates a decline of 11.8% from the year-ago quarter’s reported figure. The cosmetics company has a trailing four-quarter earnings surprise of 22.9%, on average. In the last reported quarter, the company’s bottom line was in line with the Zacks Consensus Estimate.
We expect fiscal second-quarter net revenues to be down 2.5% year over year to $1,538.9 million and the bottom line to decline 22.9% to 13 cents a share.
Coty has been battling persistent inflation for a while now. The global supply-chain-related challenges and rising demand for fragrances has been leading to industry-wide supply constraints for key fragrance components. The persistence of such hurdles might have hurt the company’s performance in the second quarter of fiscal 2023.
Coty’s international presence keeps it exposed to the risk of adverse currency fluctuations. In its last earnings call, management highlighted that it expects unfavorable currency rates to impact fiscal second-quarter sales by 7-9%. In addition, the company expects the net impact of its Russia exit to have hurt quarterly sales by approximately 3%.
That said, management expects first-half core business LFL revenue growth trends to be consistent with the annual growth target of 6-8%, with demand remaining robust in fiscal second-quarter. The company also expects modest gross margin expansion in the quarter amid a rising inflationary environment.
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 carries a Zacks Rank #3 and has an Earnings ESP of +0.92%.
Some Other Stocks With Favorable Combinations
Here are three other companies you may want to consider, as our model shows they these have the right combination of elements to post an earnings beat:
Performance Food Group Company (PFGC - Free Report) currently has an Earnings ESP of +0.39% and a Zacks Rank #3. The company is expected to register bottom line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 76 cents suggests an increase from the 57 cents reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance Food Group Company's top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $13.91 billion, indicating an increase of 8.4% from the figure reported in the year-ago quarter. PFGC has a trailing four-quarter earnings surprise of 15.2%, on average.
Freshpet, Inc. (FRPT - Free Report) is likely to register top and bottom line growth when it reports fourth-quarter 2022 results. FRPT has an Earnings ESP of +2.04% and a Zacks Rank #3. The Zacks Consensus Estimate for Freshpet’s bottom line has remained unchanged at a loss of 8 cents in the past 30 days, indicating 61.9% growth from the year-ago period’s reported figure.
FRPT has a trailing four-quarter negative earnings surprise of roughly 88%, on average. The consensus mark for Freshpet’s top line is pegged at $151.1 million, calling for growth of 30.4% from the prior-year quarter’s reported figure.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +4.12% and a Zacks Rank of 3. K is expected to register a top line improvement when it reports fourth-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.7 billion, calling for growth of almost 7% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 84 cents indicates growth of 1.2% compared with the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 10.6%, on average.
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Coty (COTY) to Report Q2 Earnings: What's in the Offing?
Coty Inc. (COTY - Free Report) is likely to register top and bottom line declines when it reports second-quarter fiscal 2023 earnings on Feb 8. The Zacks Consensus Estimate for revenues is pegged at $1,539 million, suggesting a decrease of 3.2% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Coty’s fiscal second-quarter bottom line has remained unchanged in the past 30 days at 15 cents per share. The projection indicates a decline of 11.8% from the year-ago quarter’s reported figure. The cosmetics company has a trailing four-quarter earnings surprise of 22.9%, on average. In the last reported quarter, the company’s bottom line was in line with the Zacks Consensus Estimate.
We expect fiscal second-quarter net revenues to be down 2.5% year over year to $1,538.9 million and the bottom line to decline 22.9% to 13 cents a share.
Coty Price and EPS Surprise
Coty price-eps-surprise | Coty Quote
Things to Consider
Coty has been battling persistent inflation for a while now. The global supply-chain-related challenges and rising demand for fragrances has been leading to industry-wide supply constraints for key fragrance components. The persistence of such hurdles might have hurt the company’s performance in the second quarter of fiscal 2023.
Coty’s international presence keeps it exposed to the risk of adverse currency fluctuations. In its last earnings call, management highlighted that it expects unfavorable currency rates to impact fiscal second-quarter sales by 7-9%. In addition, the company expects the net impact of its Russia exit to have hurt quarterly sales by approximately 3%.
That said, management expects first-half core business LFL revenue growth trends to be consistent with the annual growth target of 6-8%, with demand remaining robust in fiscal second-quarter. The company also expects modest gross margin expansion in the quarter amid a rising inflationary environment.
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 carries a Zacks Rank #3 and has an Earnings ESP of +0.92%.
Some Other Stocks With Favorable Combinations
Here are three other companies you may want to consider, as our model shows they these have the right combination of elements to post an earnings beat:
Performance Food Group Company (PFGC - Free Report) currently has an Earnings ESP of +0.39% and a Zacks Rank #3. The company is expected to register bottom line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 76 cents suggests an increase from the 57 cents reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance Food Group Company's top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $13.91 billion, indicating an increase of 8.4% from the figure reported in the year-ago quarter. PFGC has a trailing four-quarter earnings surprise of 15.2%, on average.
Freshpet, Inc. (FRPT - Free Report) is likely to register top and bottom line growth when it reports fourth-quarter 2022 results. FRPT has an Earnings ESP of +2.04% and a Zacks Rank #3. The Zacks Consensus Estimate for Freshpet’s bottom line has remained unchanged at a loss of 8 cents in the past 30 days, indicating 61.9% growth from the year-ago period’s reported figure.
FRPT has a trailing four-quarter negative earnings surprise of roughly 88%, on average. The consensus mark for Freshpet’s top line is pegged at $151.1 million, calling for growth of 30.4% from the prior-year quarter’s reported figure.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +4.12% and a Zacks Rank of 3. K is expected to register a top line improvement when it reports fourth-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.7 billion, calling for growth of almost 7% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 84 cents indicates growth of 1.2% compared with the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 10.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.