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COTY Set to Report Q2 Earnings: Factors to Keep in Mind
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Coty Inc. (COTY - Free Report) is likely to register top-line growth when it reports second-quarter fiscal 2024 earnings on Feb 7. The Zacks Consensus Estimate for revenues is pegged at $1.7 billion, suggesting growth of 9.6% from the prior-year quarter’s reported figure.
However, the company’s bottom line is likely to decline year over year in the fiscal second quarter. Although the consensus mark for quarterly earnings has moved up by a penny in the past 30 days to 20 cents per share, the projection indicates a fall of 9.1% from the year-ago quarter’s reported figure. COTY has a trailing four-quarter earnings surprise of 120.7%, on average.
Things to Note
Coty has been reaping benefits from the ongoing premiumization trends in the booming beauty market. Momentum in the core categories and an impressive innovation pipeline have been working well. The company’s focus on strategic pillars, like strengthening e-commerce and Direct-to-Consumer business, among others, is yielding. Gains from Coty’s prudent partnerships have also been an upside.
All these upsides, along with management’s guidance for the first half of fiscal 2024, give out favorable signals for fiscal second-quarter performance. For the first half of fiscal 2024, Coty expects core LFL sales growth in the range of 11-13%.
We note that Coty has been witnessing strength in its Prestige & Consumer Beauty businesses. Our model suggests revenue growth of 7.3% and 10.2%, respectively, for the Prestige and Consumer Beauty units in the fiscal second quarter.
However, Coty has been witnessing dynamic inflation and a supply chain environment. Our model suggests an 8.1% increase in adjusted cost of sales for the second quarter of fiscal 2024, wherein we expect SG&A expenses to rise 16.8% year over year. Also, Coty’s international presence keeps it exposed to the risk of adverse currency fluctuations.
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 +3.35%.
Other Stocks With Favorable Combination
Here are some other companies worth considering, as our model shows that these have the correct elements to beat on earnings this time.
Coca-Cola (KO - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank of 2. KO is likely to register top-and bottom-line growth when it reports the fourth-quarter 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $10.6 billion, suggesting growth of 5% from that 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 Coca-Cola’s quarterly earnings has been unchanged in the past 30 days, at 48 cents per share. The consensus estimate for earnings suggests 6.7% growth from the year-ago quarter’s reported number. KO has delivered an earnings beat of 5.1%, on average, in the trailing four quarters.
TreeHouse Foods (THS - Free Report) currently has an Earnings ESP of +7.04% and a Zacks Rank #2. THS is likely to record top and bottom-line decline when it reports fourth-quarter 2023 results.
The Zacks Consensus Estimate for revenues is pegged at $926.9 million, indicating an almost 7% decline from the prior-year quarter’s actual. The consensus mark for earnings is pinned at 71 cents per share, calling for a 27.6% decline from the year-ago quarter’s levels. THS has a trailing four-quarter earnings surprise of 26.5%, on average.
Inter Parfums (IPAR - Free Report) currently has an Earnings ESP of +11.27% and a Zacks Rank of 2. The company is likely to register a top-line increase when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Inter Parfums’ quarterly revenues is pegged at $329.1 million, indicating a rise of 5.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Inter Parfums’ quarterly earnings of 35 cents suggests a decrease of 50.7% from the year-ago quarter’s levels. IPAR has a trailing four-quarter earnings surprise of 45.7%, on average.
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COTY Set to Report Q2 Earnings: Factors to Keep in Mind
Coty Inc. (COTY - Free Report) is likely to register top-line growth when it reports second-quarter fiscal 2024 earnings on Feb 7. The Zacks Consensus Estimate for revenues is pegged at $1.7 billion, suggesting growth of 9.6% from the prior-year quarter’s reported figure.
However, the company’s bottom line is likely to decline year over year in the fiscal second quarter. Although the consensus mark for quarterly earnings has moved up by a penny in the past 30 days to 20 cents per share, the projection indicates a fall of 9.1% from the year-ago quarter’s reported figure. COTY has a trailing four-quarter earnings surprise of 120.7%, on average.
Things to Note
Coty has been reaping benefits from the ongoing premiumization trends in the booming beauty market. Momentum in the core categories and an impressive innovation pipeline have been working well. The company’s focus on strategic pillars, like strengthening e-commerce and Direct-to-Consumer business, among others, is yielding. Gains from Coty’s prudent partnerships have also been an upside.
All these upsides, along with management’s guidance for the first half of fiscal 2024, give out favorable signals for fiscal second-quarter performance. For the first half of fiscal 2024, Coty expects core LFL sales growth in the range of 11-13%.
We note that Coty has been witnessing strength in its Prestige & Consumer Beauty businesses. Our model suggests revenue growth of 7.3% and 10.2%, respectively, for the Prestige and Consumer Beauty units 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 carries a Zacks Rank #3 and has an Earnings ESP of +3.35%.
Other Stocks With Favorable Combination
Here are some other companies worth considering, as our model shows that these have the correct elements to beat on earnings this time.
Coca-Cola (KO - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank of 2. KO is likely to register top-and bottom-line growth when it reports the fourth-quarter 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $10.6 billion, suggesting growth of 5% from that 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 Coca-Cola’s quarterly earnings has been unchanged in the past 30 days, at 48 cents per share. The consensus estimate for earnings suggests 6.7% growth from the year-ago quarter’s reported number. KO has delivered an earnings beat of 5.1%, on average, in the trailing four quarters.
TreeHouse Foods (THS - Free Report) currently has an Earnings ESP of +7.04% and a Zacks Rank #2. THS is likely to record top and bottom-line decline when it reports fourth-quarter 2023 results.
The Zacks Consensus Estimate for revenues is pegged at $926.9 million, indicating an almost 7% decline from the prior-year quarter’s actual. The consensus mark for earnings is pinned at 71 cents per share, calling for a 27.6% decline from the year-ago quarter’s levels. THS has a trailing four-quarter earnings surprise of 26.5%, on average.
Inter Parfums (IPAR - Free Report) currently has an Earnings ESP of +11.27% and a Zacks Rank of 2. The company is likely to register a top-line increase when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Inter Parfums’ quarterly revenues is pegged at $329.1 million, indicating a rise of 5.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Inter Parfums’ quarterly earnings of 35 cents suggests a decrease of 50.7% from the year-ago quarter’s levels. IPAR has a trailing four-quarter earnings surprise of 45.7%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.