Beauty products company Coty (NYSE: COTY) will be announcing earnings results this Tuesday after market close. Here’s what to expect.
Coty beat analysts’ revenue expectations last quarter, reporting revenues of $1.68 billion, flat year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.
Is Coty a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Coty’s revenue to decline 1.9% year on year, improving from the 6.2% decrease it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. Coty has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Coty’s peers in the consumer staples segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Estée Lauder delivered year-on-year revenue growth of 4.6%, meeting analysts’ expectations, and Vita Coco reported revenues up 37.3%, topping estimates by 20.5%. Vita Coco traded up 27.8% following the results.
Read our full analysis of Estée Lauder’s results here and Vita Coco’s results here.
There has been positive sentiment among investors in the consumer staples segment, with share prices up 2.8% on average over the last month. Coty is up 14.8% during the same time and is heading into earnings with an average analyst price target of $3.09 (compared to the current share price of $2.48).
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