Beauty products company Coty (NYSE:COTY) will be reporting results this Wednesday after market hours. Here’s what to expect.
Coty beat analysts’ revenue expectations last quarter, reporting revenues of $1.27 billion, up 1.3% year on year. It was a strong quarter for the company, with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EBITDA estimates.
Is Coty a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Coty’s revenue to decline 3.1% year on year, improving from the 5.6% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Coty has missed Wall Street’s revenue estimates multiple times over the last two years.
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. Estée Lauder delivered year-on-year revenue growth of 6.8%, beating analysts’ expectations by 1.8%, and Medifast reported a revenue decline of 19.4%, topping estimates by 1%. Medifast traded up 5.2% following the results.
Read our full analysis of Estée Lauder’s results here and Medifast’s results here.
There has been positive sentiment among investors in the personal care segment, with share prices up 8.3% on average over the last month. Coty is up 26.7% during the same time and is heading into earnings with an average analyst price target of $2.70 (compared to the current share price of $3.45).
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