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Coty's Q4 Earnings on The Horizon: Essential Insights for Investors

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Key Takeaways

  • Coty expands prestige fragrances, boosts digital reach and drives cost savings for margin support.
  • Weakness in China, Travel Retail Asia and U.S. Consumer Beauty pressures Q4 performance.
  • Currency headwinds and higher promotions may impact reported quarter results.

Coty Inc. ((COTY - Free Report) ) is likely to register a decline in the top line when it reports fourth-quarter fiscal 2025 earnings on Aug. 20. The Zacks Consensus Estimate for revenues is pegged at $1.2 billion, indicating a decrease of 12% from the prior-year reported figure.

The consensus mark for earnings has been stable in the past 30 days at two cents per share, which indicates a rise from a loss of three cents seen in the year-ago quarter. COTY delivered a trailing four-quarter negative earnings surprise of 81.5%, on average.

Things to Know About COTY’s Upcoming Results

Coty’s strategic priorities are likely to have provided meaningful support to its performance in the quarter to be reported. Key initiatives, such as expanding its prestige fragrance portfolio, strengthening digital and DTC capabilities, and executing cost-saving measures, are expected to have driven consumer engagement and supported margin resilience.

Coty’s fragrance business remains a core revenue driver. Management remains committed to optimizing the overall cost structure. Coty is progressing well with the All In to Win transformation program across key work areas.

However, Coty has been facing significant challenges across several key areas of its business, including China, Travel Retail Asia and Consumer Beauty in the United States. Management had anticipated LFL sales to decline high single-digit for the fourth quarter. We expect organic LFL revenues to decline 9.3% for the fourth quarter of fiscal 2025. In addition, Coty has been experiencing higher advertising and consumer promotions spending for a while now. Currency headwinds are also likely to weigh on the results in the to-be-reported quarter.

Earnings Whispers for COTY Stock

Our proven model does not 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 has an Earnings ESP of 0.00% and a Zacks Rank of 3. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Coty Price and EPS Surprise

Coty Price and EPS Surprise

Coty price-eps-surprise | Coty Quote

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

The Estée Lauder Companies Inc. ((EL - Free Report) ) currently has an Earnings ESP of +36.11% and a Zacks Rank of 3. The company is likely to register declines in the top and bottom lines when it reports fourth-quarter fiscal 2025 numbers. The consensus mark for revenues is pegged at $3.4 billion, which indicates a decrease of 12.2% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for EL’s quarterly earnings per share of eight cents implies a sharp decline from 64 cents per share reported in the year-ago quarter. The consensus mark has gone up two cents in the past 30 days. EL has a trailing four-quarter earnings surprise of 107.4%, on average.

European Wax Center ((EWCZ - Free Report) ) currently has an Earnings ESP of +2.26% and a Zacks Rank of 3. The company is likely to register a decline in the top line when it reports second-quarter 2025 numbers. The consensus mark for revenues is pegged at $56.9 million, which indicates a decrease of 4.9% from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for EWCZ’s quarterly earnings per share of 19 cents implies a rise of 26.7% from the year-ago quarter. The consensus mark has been stable in the past 30 days. EWCZ has a trailing four-quarter earnings surprise of 186.9%, on average.

BJ's Wholesale Club Holdings, Inc. ((BJ - Free Report) ) currently has an Earnings ESP of +0.29% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter fiscal 2025 EPS has been stable in the past 30 days at $1.10, which implies a 0.9% rise year over year.

The consensus mark for BJ's Wholesale Club’s quarterly revenues is pegged at $5.5 billion, which indicates growth of 5.2% from the figure reported in the prior-year quarter. BJ delivered a trailing four-quarter earnings surprise of 17.7%, on average.

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