Beauty products company Coty (NYSE:COTY) will be reporting earnings tomorrow after market hours. Here's what to expect.
Coty beat analysts' revenue expectations by 2.9% last quarter, reporting revenues of $1.73 billion, up 13.4% year on year. It was a strong quarter for the company, with optimistic earnings guidance for the full year and a solid beat of analysts' earnings estimates.
This quarter, analysts are expecting Coty's revenue to grow 6.5% year on year to $1.37 billion, slowing from the 8.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 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 a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 2.8% on average.
Looking at Coty's peers in the personal care segment, some have already reported their Q1 results, giving us a hint as to what we can expect. USANA's revenues decreased 8.3% year on year, meeting analysts' expectations, and Medifast reported a revenue decline of 49.9%, in line with consensus estimates. USANA traded up 9.6% following the results while Medifast was down 22.5%.
Investors in the personal care segment have had steady hands going into earnings, with share prices flat over the last month. Coty is up 4% during the same time and is heading into earnings with an average analyst price target of $11.4 (compared to the current share price of $11.6).
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