Coty (COTY) Reports Q4: Everything You Need To Know Ahead Of Earnings

Beauty products company Coty (NYSE:COTY) will be announcing earnings results tomorrow after the bell. Here’s what you need to know.

Coty met analysts’ revenue expectations last quarter, reporting revenues of $1.67 billion, up 1.8% year on year. It was a softer quarter for the company, with full-year EBITDA guidance missing analysts’ expectations and a significant miss of analysts’ EPS estimates.

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 be flat year on year at $1.72 billion, slowing from the 13.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Coty has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Coty’s peers in the consumer staples segment, some have already reported their Q4 results, giving us a hint as to what we can expect. e.l.f. Beauty delivered year-on-year revenue growth of 31.1%, beating analysts’ expectations by 7.8%, and Estée Lauder reported a revenue decline of 6.4%, topping estimates by 0.7%. e.l.f. Beauty traded down 19.7% following the results while Estée Lauder was also down 20.4%.

Read our full analysis of e.l.f. Beauty’s results here and Estée Lauder’s results here.

Investors in the consumer staples segment have had fairly steady hands going into earnings, with share prices down 1.9% on average over the last month. Coty’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $9.94 (compared to the current share price of $6.74).

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.