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Coty's Q1 Earnings Coming Up: Here's What You Should Know

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Coty Inc. (COTY - Free Report) is likely to register growth in its top and bottom lines when it reports first-quarter fiscal 2025 earnings on Nov. 6. The Zacks Consensus Estimate for revenues is pegged at $1.68 billion, suggesting an increase of 2.2% from the prior-year reported figure. The consensus mark for earnings has declined a penny in the past 30 days to 19 cents per share, indicating a rise of 111.1% year over year. COTY has a trailing four-quarter negative earnings surprise of 53.4%, on average.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Things to Consider Ahead of COTY’s Upcoming Results

Coty has been reaping benefits from brand strength, along with robust momentum in the global beauty market. Constant innovation and strategic partnerships have been working well for the company. These trends highlight consumers' enduring preference for beauty as a vital part of their well-being. Consumers’ demand for fragrances, cosmetics and skincare products and their engagement in both physical stores and online have been the key drivers.

Coty recently unveiled preliminary results for the first quarter of fiscal 2025, wherein sales grew approximately 4-5% on a like-for-like basis, below the company’s earlier estimate of 6%. Management stated that the global beauty market has shown solid growth, yet the growth rates have dipped slightly. The prestige fragrance segment is thriving, driven by increases in both volume and pricing strategies. In contrast, the mass beauty category is facing slower growth, thanks to waning unit demand. While many regions experience resilient beauty growth, the U.S. market saw a slowdown in the latter half of the fiscal first quarter.

While Coty supports core icons and invests in new launches, a rise in costs and expenses, if not controlled, might have dented margins.

Coty Price, Consensus and EPS Surprise

Coty Price, Consensus and EPS Surprise

Coty price-consensus-eps-surprise-chart | Coty Quote

Earnings Whispers for COTY

Our proven model doesn’t conclusively predict an earnings beat for Coty this time. 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, which is not the case here.

Coty carries a Zacks Rank #3 and has an Earnings ESP of -5.17% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Some Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the correct combination to beat on earnings this time around.

Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) currently has an Earnings ESP of +1.50% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

OLLI's top line is anticipated to increase year over year when it reports third-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $519 million, which implies 8.1% growth from the year-ago quarter’s reported figure.

The company is expected to register an increase in the bottom line. The consensus estimate for Ollie's Bargain’s third-quarter earnings is pegged at 57 cents per share, indicating 11.8% growth from the year-ago level. OLLI has a trailing four-quarter earnings surprise of 7.9%, on average.

Sweetgreen, Inc. (SG - Free Report) currently has an Earnings ESP of +4.76% and a Zacks Rank of 3. SG is likely to register growth in its top and bottom lines when it reports third-quarter 2024 results. The Zacks Consensus Estimate for Sweetgreen’s quarterly revenues is pegged at $173.7 million, which indicates an increase of 13.2% from the figure reported in the prior-year quarter.

The consensus estimate for SG’s bottom line is expected to increase 27.3% year over year. Sweetgreen delivered a negative average earnings surprise of almost 12% in the trailing four quarters.

Jack in the Box Inc. (JACK - Free Report) presently has an Earnings ESP of +1.28% and a Zacks Rank of 3. The company is likely to register a top-line decline when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for JACK’s quarterly revenues is pegged at $357.9 million, which indicates a dip of 3.9% from the figure reported in the prior-year quarter.

The consensus estimate for Jack in the Box’s quarterly earnings has declined 2 cents over the past 30 days to $1.12 per share. The figure indicates growth of 2.8% from the year-ago reported number. JACK delivered an average earnings surprise of 1.7% in the trailing four quarters.

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