- Coty’s 3Q Prestige Channel Net Revenue of $867.2 million met estimates and was higher than estimated Consumer Beauty Net Revenue at $518.4 million.
- The company’s 3Q net revenue was $1.39 billion and the adjusted EPS stood at 5.0c.
- Coty’s gross margin and adjusted gross margin both were 64.8%, surpassing the estimated 64%.
- The adjusted Ebitda for Coty was $199.9 million, better than the estimated $194 million.
- Coty is forecasting savings of $110-120 million in FY24.
- For FY24, the company expects adjusted EBITDA margin expansion to reach the upper end of its previous guidance range of 10 to 30 basis points.
- FX headwinds in Q4 are seen as a contributing factor for Coty’s FY24 adjusted EBITDA to remain within its prior guidance range of $1,080 to $1,090 million at current FX rates.
- Expectation of modest FY24 gross margin expansion year-over-year remains intact.
- Notwithstanding subdued trends in U.S. mass cosmetics, strength and differentiation in Coty’s global and multi-category presence has been seen.
- Business growth by a low-double-digit percentage in global prestige and mass fragrances, and over 20% sales growth in prestige cosmetics were observed.
- Strong growth in both Prestige and Consumer Beauty businesses on a quarterly and fiscal year-to-date basis, in all three regions, and in core categories of fragrances, color cosmetics, skin care, and body care was noted.
- Coty earned 11 buys, 11 holds, and 0 sells in the investor ratings.
A look at Coty Inc Cl A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have assessed Coty Inc Cl A using the Smart Scores methodology to gauge the company’s long-term outlook. With a strong score of 4 in Growth, Coty Inc seems poised for significant expansion and development in the future. This indicates a positive trend towards increasing market share and expanding product lines in the beauty industry.
Despite a lower score of 1 in Dividend, Coty Inc’s other scores show a balanced overall outlook. With a score of 3 in Value and Momentum, along with a score of 2 in Resilience, the company demonstrates solid fundamentals and potential for sustained performance. Investors may find Coty Inc Cl A an attractive prospect for long-term growth and value creation.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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