A Preview Of Coty's Earnings

Coty COTY will release its quarterly earnings report on Wednesday, 2024-11-06. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Coty to report an earnings per share (EPS) of $0.19.

The announcement from Coty is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings Track Record

The company's EPS missed by $0.07 in the last quarter, leading to a 6.3% increase in the share price on the following day.

Here's a look at Coty's past performance and the resulting price change:

Tracking Coty's Stock Performance

Shares of Coty were trading at $7.47 as of November 04. Over the last 52-week period, shares are down 25.42%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.

Analysts' Take on Coty

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Coty.

Analysts have given Coty a total of 17 ratings, with the consensus rating being Buy. The average one-year price target is $12.03, indicating a potential 61.04% upside.

Comparing Ratings with Peers

The analysis below examines the analyst ratings and average 1-year price targets of e.l.f. Beauty, Interparfums and Edgewell Personal Care, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• As per analysts' assessments, e.l.f. Beauty is favoring an Buy trajectory, with an average 1-year price target of $197.5, suggesting a potential 2543.91% upside.
• Interparfums is maintaining an Buy status according to analysts, with an average 1-year price target of $170.83, indicating a potential 2186.88% upside.
• For Edgewell Personal Care, analysts project an Neutral trajectory, with an average 1-year price target of $39.25, indicating a potential 425.44% upside.

Snapshot: Peer Analysis

The peer analysis summary provides a snapshot of key metrics for e.l.f. Beauty, Interparfums and Edgewell Personal Care, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Coty ranks at the bottom for Revenue Growth, with the lowest percentage among peers. It also has the lowest Gross Profit among the group. In terms of Return on Equity, Coty is at the bottom as well. Overall, Coty lags behind its peers in key financial metrics.

Unveiling the Story Behind Coty

Coty is a global beauty maker that focuses on fragrance (59% of sales) and color cosmetics (28%), with limited exposure to skincare (5%) and body care (8%). For the fragrance business, Coty licenses luxury and high-end brands including Gucci, Burberry, Hugo Boss, Davidoff, and Calvin Klein, while its consumer cosmetics business focuses on acquired mass brands such as CoverGirl, Max Factor, Rimmel, Sally Hansen, and Bourjois. It also collaborates with social media celebrities Kim Kardashian and Kylie Jenner to launch makeup products bearing their names. By region, Coty generates close to 44% of sales from Europe, 42% from the Americas, and 14% from Asia-Pacific. German investment firm JAB is a controlling shareholder, with a 53% stake.

Key Indicators: Coty's Financial Health

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: Coty displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 0.87%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Staples sector.

Net Margin: Coty's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -7.35% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Coty's ROE excels beyond industry benchmarks, reaching -2.56%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Coty's ROA excels beyond industry benchmarks, reaching -0.82%. This signifies efficient management of assets and strong financial health.

Debt Management: Coty's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.08, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for Coty visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.