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Coty's (COTY) Q4 Earnings in Focus: Everything You Should Know

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·3 min read
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Coty Inc. COTY is likely to register growth in the top and the bottom line when it reports fourth-quarter fiscal 2021 numbers on Aug 26. The Zacks Consensus Estimate for quarterly revenues is pegged at $1,022 million, indicating a surge of 82.4% from the prior-year quarter’s reported figure. For fiscal 2021, the consensus mark for revenues is pegged at $4,587 million, indicating a decline of 28.1% from the year-ago period’s reported figure.

The Zacks Consensus Estimate for the bottom line has narrowed by a cent in the past 30 days, to a loss of 5 cents per share for fiscal fourth quarter. The projection shows improvement from a loss of 46 cents per share reported in the year-ago quarter. For fiscal 2021, the consensus mark for earnings is pegged at 6 cents per share, suggesting an improvement from a loss of 48 cents reported in the year-ago period. The cosmetics company has a trailing four-quarter negative earnings surprise of 35.12%, on average.

Coty Inc. Price and EPS Surprise

Coty Inc. Price and EPS Surprise
Coty Inc. Price and EPS Surprise

Coty Inc. price-eps-surprise | Coty Inc. Quote

Key Factors to Note

Coty is benefiting from solid e-commerce business, especially amid the pandemic. Strength in the company’s strategic partnerships is also yielding. The company’s focus on core priorities including stabilizing Consumer Beauty make-up brands and mass fragrances; accelerating luxury fragrances as well as establishing a skincare portfolio in prestige and mass channels among others bodes well. Coty expects total sales of $4.5-$4.6 billion for fiscal 2021. Management expects adjusted EBITDA of $750 million for fiscal 2021.

In its last earnings call, management highlighted that it expects to see higher commercial investments in the fourth quarter of fiscal 2021. These investments were directed to support strategic priorities as well as improvement of sell-out trends, as the broader beauty market starts to rebound. That being said, management is focused on curtailing the cost structure. For fiscal 2021, the company expects cost savings of about $300 million.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Coty this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Coty currently carries a Zacks Rank #3 and has an Earnings ESP of -77.08%.

Some Stocks With Favorable Combinations

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

The J. M. Smucker Company SJM currently has an Earnings ESP of +0.46% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Abercrombie & Fitch Co. ANF currently has an Earnings ESP of +6.14% and a Zacks Rank of 1.

Nordstrom, Inc. JWN currently has an Earnings ESP of +18.69% and a Zacks Rank of 3.


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Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report

Nordstrom, Inc. (JWN) : Free Stock Analysis Report

The J. M. Smucker Company (SJM) : Free Stock Analysis Report

Coty Inc. (COTY) : Free Stock Analysis Report

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