Examine the evolution of Coty's (COTY) overseas revenue trends and their effects on Wall Street's forecasts and the stock's prospects.
DA Davidson lowered the firm's price target on Coty to $12.50 from $14.50 but keeps a Buy rating on the shares after its Q1 earnings miss. The company's organic sales growth of 4.5% was impacted by U.S. mass retailer inventory reductions, U.S. drug store closures, and declines in China and Asia travel retail, reducing sell-in by a few percentage points, with softness also expected to continue in Q2, the analyst tells investors in a research note. The firm adds however that the stock is cheap, trading at 6.5-times expected 2026 EBITDA.
Coty's Q1 2025 results showed revenue in line with expectations, but missed earnings per share estimates, leading to a mixed bottom line performance. Despite past volatility and a 13.2% share price drop since 2021, Coty has shown revenue growth and improved cash flow metrics, warranting a soft 'buy' rating. Management's restructuring efforts have significantly reduced leverage and are expected to yield $120 million in annualized savings, enhancing the company's financial stability.
Coty, Inc. (COTY) Q1 2025 Earnings Call Transcript
COTY's Q1 results show higher sales and earnings, but challenges in the Chinese mainland, Asia Travel Retail and the U.S. mass cosmetics weighed on performance.
Coty Inc. (COTY) Q1 2025 Earnings Call Transcript
The headline numbers for Coty (COTY) give insight into how the company performed in the quarter ended September 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Coty (COTY) came out with quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.09 per share a year ago.
Coty on Wednesday said it expects annual profit to come in at the low end of its forecast, as weak demand for beauty products in major markets such as the United States and Australia offset gains in the fragrance segment.
The Zacks Cosmetics industry is navigating a tough shopping environment. Nevertheless, COTY, Helen of Troy, European Wax Center and Nu Skin are leveraging innovations.
Looking beyond Wall Street's top -and-bottom-line estimate forecasts for Coty (COTY), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended September 2024.
COTY's Q1 results are likely to reflect strength in the prestige fragrance category, with slower growth in mass beauty.