Coty Inc. COTY is likely to register a decline in its top and bottom lines when it reports second-quarter fiscal 2025 earnings on Feb. 10.

The Zacks Consensus Estimate for revenues is pegged at $1.72 billion, suggesting a decrease of 0.7% from the prior-year reported figure. The consensus mark for earnings has declined a penny in the past seven days to 20 cents per share, indicating a decrease of 20% year over year. COTY has a trailing four-quarter negative earnings surprise of 46.9%, on average.

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Coty Price and EPS Surprise

Coty price-eps-surprise | Coty Quote

Things to Know About COTY’s Upcoming Results

Coty is navigating a challenging macroeconomic environment, as the exceptional growth in the beauty market transitions into a more normalized phase. The company is experiencing headwinds in key markets such as the Chinese mainland and Asia Travel Retail, thanks to dynamic demand conditions. Our model predicts a like-for-like Asia Pacific net revenue decline of 3.2% in the to-be-reported quarter.

In addition, Coty has faced ongoing pressure from higher selling, general and administrative expenses. The company’s increased spending on advertising and consumer promotions is straining its profitability. Apart from this, Coty’s international presence exposes it to risks associated with unfavorable currency fluctuations. These challenges pose a threat to Coty’s fiscal second-quarter results. Despite these challenges, the company expects a mid-single-digit percentage growth in adjusted EBITDA for the fiscal second quarter.

Earnings Whispers for COTY Stock

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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Coty carries a Zacks Rank #3 and has an Earnings ESP of -4.88%.

Some 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 Coca-Cola Company KO currently has an Earnings ESP of +0.35% and a Zacks Rank of 3. The Zacks Consensus Estimate for quarterly revenues is pegged at $10.69 billion, which indicates a decrease of 1.5% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Coca-Cola’s fourth-quarter 2024 EPS is pegged at 51 cents, which implies a 4.1% increase year over year. KO has a trailing four-quarter earnings surprise of 3.9%, on average.

Kellanova K currently has an Earnings ESP of +0.69% and a Zacks Rank of 3. The company is likely to register bottom-line growth when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for Kellanova’s quarterly EPS is pegged at 82 cents, indicating 5.1% growth from the year-ago period. K has a trailing four-quarter earnings surprise of 10.9%, on average.

The Zacks Consensus Estimate for Kellanova’s quarterly revenues is pegged at $3.09 billion, which suggests a decrease of 2.6% from the prior-year quarter.

WK Kellogg KLG currently has an Earnings ESP of +14.85% and a Zacks Rank of 3. The company is likely to register a decline in its top line when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for WK Kellogg’s quarterly revenues is pegged at $642.9 million, which suggests a decrease of 1.2% from the prior-year quarter.

The Zacks Consensus Estimate for WK Kellogg’s quarterly earnings per share is pegged at 25 cents, indicating a 38.9% increase from the year-ago period. KLG delivered an earnings surprise of 19.2% in the last reported quarter.

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