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Coty Gears Up for Q4 Earnings: What's in the Offing?
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Coty Inc. (COTY - Free Report) is likely to register top- and bottom-line growth when it reports fourth-quarter fiscal 2023 earnings on Aug 22. The Zacks Consensus Estimate for revenues is pegged at $1.3 billion, suggesting an increase of 13.4% from the prior-year quarter’s reported figure. The consensus mark for fiscal 2023 sales is pegged at $5.5 billion, projecting growth of 4.2% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for Coty’s fiscal fourth-quarter bottom line has been steady at 2 cents per share in the past 30 days, suggesting an increase of 300% from the year-ago quarter’s reported figure. The consensus mark for fiscal 2023 earnings is pegged at 54 cents, projecting a surge of 92.9% from the year-ago period’s reported figure.
The cosmetics company has a trailing four-quarter earnings surprise of 145%, on average. In the last reported quarter, the company delivered an earnings surprise of 533.3%.
Coty has been benefiting from its focus on six strategic pillars of sustainable growth. These include stabilizing Consumer Beauty brands, strengthening e-commerce and establishing a solid skincare portfolio. The company has been undertaking several strategic partnerships to enhance its brand portfolio. Coty is committed to saving initiatives and pricing actions amid inflationary headwinds.
In its last earnings call, management highlighted that its fiscal fourth-quarter core LFL sales growth is tracking at 10%, similar to the last reported quarter. Notably, both Prestige and Consumer Beauty segments are seeing sequential growth. Consequently, management anticipates core LFL sales growth in the range of 9-10% in fiscal 2023.
Despite the elevated inflationary environment, the company expects modest gross margin expansion in the fourth quarter and FY23, aided by savings and solid pricing execution.
We expect LFL sales growth of 9.2% for fiscal 2023. We expect a gross margin of 62.4% in the to-be-reported quarter, suggesting an expansion of 60 basis points.
Coty anticipates fiscal 2023 adjusted EBITDA of $955-$965 million. It expects adjusted EBITDA margin and adjusted operating margin expansion of 50 bps and 150 bps, respectively, for the year. Coty expects an approximately 35% growth of fiscal 2023 adjusted earnings per share (EPS) as it expects it to be in the range of 38-39 cents.
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 +20.00%.
More Stocks With Favorable Combination
Here are three more companies worth considering, as our model shows that these have the correct elements to beat on earnings this time around.
Hormel Foods (HRL - Free Report) currently has an Earnings ESP of +3.45% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for Hormel Foods’ quarterly revenues is pegged at $3.1 billion, which implies a rise of 2.8% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 41 cents, which indicates a 2.5% jump from the year-ago period figure. HRL has a trailing four-quarter negative earnings surprise of 2.3% on average.
Walmart Inc. (WMT - Free Report) currently has an Earnings ESP of +2.1% and a Zacks Rank #2. The company’s top line is expected to increase year over year when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for Walmart’s quarterly revenues is pegged at $159.8 billion, calling for growth of 4.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at $1.69, indicating a decrease of 4.5% from the figure reported in the year-ago quarter. WMT has a trailing four-quarter earnings surprise of around 12%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +1.08% and a Zacks Rank of 3. COST is likely to witness a bottom-line growth from the year-ago fiscal quarter’s reported figure when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings is pegged at $4.72 per share over the past 30 days, suggesting a 12.4% rise from the year-ago fiscal quarter’s reported number.
Costco’s top line is expected to rise from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $78.9 billion, suggesting a 9.4% rise from the figure reported in the prior-year fiscal quarter. COST delivered an earnings beat of 1.8%, on average, in the trailing four quarters.
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Coty Gears Up for Q4 Earnings: What's in the Offing?
Coty Inc. (COTY - Free Report) is likely to register top- and bottom-line growth when it reports fourth-quarter fiscal 2023 earnings on Aug 22. The Zacks Consensus Estimate for revenues is pegged at $1.3 billion, suggesting an increase of 13.4% from the prior-year quarter’s reported figure. The consensus mark for fiscal 2023 sales is pegged at $5.5 billion, projecting growth of 4.2% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for Coty’s fiscal fourth-quarter bottom line has been steady at 2 cents per share in the past 30 days, suggesting an increase of 300% from the year-ago quarter’s reported figure. The consensus mark for fiscal 2023 earnings is pegged at 54 cents, projecting a surge of 92.9% from the year-ago period’s reported figure.
The cosmetics company has a trailing four-quarter earnings surprise of 145%, on average. In the last reported quarter, the company delivered an earnings surprise of 533.3%.
Coty Price and EPS Surprise
Coty price-eps-surprise | Coty Quote
Things To Consider
Coty has been benefiting from its focus on six strategic pillars of sustainable growth. These include stabilizing Consumer Beauty brands, strengthening e-commerce and establishing a solid skincare portfolio. The company has been undertaking several strategic partnerships to enhance its brand portfolio. Coty is committed to saving initiatives and pricing actions amid inflationary headwinds.
In its last earnings call, management highlighted that its fiscal fourth-quarter core LFL sales growth is tracking at 10%, similar to the last reported quarter. Notably, both Prestige and Consumer Beauty segments are seeing sequential growth. Consequently, management anticipates core LFL sales growth in the range of 9-10% in fiscal 2023.
Despite the elevated inflationary environment, the company expects modest gross margin expansion in the fourth quarter and FY23, aided by savings and solid pricing execution.
We expect LFL sales growth of 9.2% for fiscal 2023. We expect a gross margin of 62.4% in the to-be-reported quarter, suggesting an expansion of 60 basis points.
Coty anticipates fiscal 2023 adjusted EBITDA of $955-$965 million. It expects adjusted EBITDA margin and adjusted operating margin expansion of 50 bps and 150 bps, respectively, for the year. Coty expects an approximately 35% growth of fiscal 2023 adjusted earnings per share (EPS) as it expects it to be in the range of 38-39 cents.
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 +20.00%.
More Stocks With Favorable Combination
Here are three more companies worth considering, as our model shows that these have the correct elements to beat on earnings this time around.
Hormel Foods (HRL - Free Report) currently has an Earnings ESP of +3.45% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for Hormel Foods’ quarterly revenues is pegged at $3.1 billion, which implies a rise of 2.8% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 41 cents, which indicates a 2.5% jump from the year-ago period figure. HRL has a trailing four-quarter negative earnings surprise of 2.3% on average.
Walmart Inc. (WMT - Free Report) currently has an Earnings ESP of +2.1% and a Zacks Rank #2. The company’s top line is expected to increase year over year when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for Walmart’s quarterly revenues is pegged at $159.8 billion, calling for growth of 4.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at $1.69, indicating a decrease of 4.5% from the figure reported in the year-ago quarter. WMT has a trailing four-quarter earnings surprise of around 12%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +1.08% and a Zacks Rank of 3. COST is likely to witness a bottom-line growth from the year-ago fiscal quarter’s reported figure when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings is pegged at $4.72 per share over the past 30 days, suggesting a 12.4% rise from the year-ago fiscal quarter’s reported number.
Costco’s top line is expected to rise from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $78.9 billion, suggesting a 9.4% rise from the figure reported in the prior-year fiscal quarter. COST delivered an earnings beat of 1.8%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.