Beauty products company Coty (NYSE: COTY) will be reporting earnings this Wednesday after market close. Here’s what to look for.
Coty beat analysts’ revenue expectations last quarter, reporting revenues of $1.28 billion, down 1.3% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but EPS in line with analysts’ 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 4.2% year on year, improving from the 8.1% 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 Q2 results, giving us a hint as to what we can expect. e.l.f. Beauty delivered year-on-year revenue growth of 35.5%, beating analysts’ expectations by 11%, and Medifast reported a revenue decline of 27.6%, topping estimates by 5.1%. e.l.f. Beauty traded up 6.9% following the results while Medifast was also up 34.3%.
Read our full analysis of e.l.f. Beauty’s results here and Medifast’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 1% during the same time and is heading into earnings with an average analyst price target of $3.13 (compared to the current share price of $2.67).
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