Did you analyze how Coty (COTY Quick QuoteCOTY - Free Report) fared in its international operations for the quarter ending March 2025? Given the widespread global presence of this beauty products company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.

International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.

Our review of COTY's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

The company's total revenue for the quarter amounted to $1.3 billion, marking a decrease of 6.2% from the year-ago quarter. We will next turn our attention to dissecting COTY's international revenue to get a clearer picture of how significant its operations are outside its main base.

A Look into COTY's International Revenue Streams

EMEA generated $610 million in revenues for the company in the last quarter, constituting 46.96% of the total. This represented a surprise of -1.29% compared to the $617.96 million projected by Wall Street analysts. Comparatively, in the previous quarter, EMEA accounted for $839.8 million (50.29%), and in the year-ago quarter, it contributed $628 million (45.32%) to the total revenue.

During the quarter, Asia Pacific contributed $159.4 million in revenue, making up 12.27% of the total revenue. When compared to the consensus estimate of $146.69 million, this meant a surprise of +8.67%. Looking back, Asia Pacific contributed $191.5 million, or 11.47%, in the previous quarter, and $168.6 million, or 12.17%, in the same quarter of the previous year.

Revenue Forecasts for the International Markets

The current fiscal quarter's total revenue for Coty, as projected by Wall Street analysts, is expected to reach $1.24 billion, reflecting a decline of 8.8% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: EMEA is anticipated to contribute 48% or $597.2 million and Asia Pacific 13.1% or $163.16 million.

For the full year, the company is expected to generate $5.87 billion in total revenue, down 4% from the previous year. Revenues from EMEA and Asia Pacific are expected to constitute 48.4% ($2.84 billion) and 11.8% ($691.54 million) of the total, respectively.

Wrapping Up

Coty's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.

In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.

Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.

The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.

Currently, Coty holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Look at Coty's Recent Stock Price Performance

The stock has declined by 3.5% over the past month compared to the 9.1% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Consumer Staples sector, which includes Coty, has decreased 0.4% during this time frame. Over the past three months, the company's shares have experienced a loss of 10.2% relative to the S&P 500's 3.1% decline. Throughout this period, the sector overall has witnessed a 2.9% increase.