Earnings To Watch: Coty (COTY) Reports Q3 Results Tomorrow

StockStory
05 Nov 2024
Earnings To Watch: Coty (COTY) Reports Q3 Results Tomorrow

Beauty products company Coty (NYSE:COTY) will be reporting results tomorrow after the bell. Here’s what to expect.

Coty met analysts’ revenue expectations last quarter, reporting revenues of $1.36 billion, flat year on year. It was a slower quarter for the company, with a miss of analysts’ earnings estimates and underwhelming earnings guidance for the full year.

Is Coty a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Coty’s revenue to grow 2% year on year to $1.67 billion, slowing from the 18.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.18 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 13 downward revisions over the last 30 days (we track 13 analysts). Coty has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.2% on average.

Looking at Coty’s peers in the personal care segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Herbalife’s revenues decreased 3.2% year on year, missing analysts’ expectations by 1%, and Estée Lauder reported a revenue decline of 4.5%, in line with consensus estimates. Herbalife’s stock price was unchanged after the results, and Estée Lauder’s price followed a similar reaction.

Read our full analysis of Herbalife’s results here and Estée Lauder’s results here.

Investors in the personal care segment have had steady hands going into earnings, with share prices flat over the last month. Coty is down 20.2% during the same time and is heading into earnings with an average analyst price target of $12.37 (compared to the current share price of $7.47).

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