Coty posted sales that were below expectations. It adjusted earnings, however, beat estimates.
The beauty company’s adjusted net income came in 17 cents a share, for its fiscal second quarter ended Dec. 31, vs. 27 cents a share, in the year-ago quarter. Analysts polled by FactSet had expected per-share earnings of 7 cents.
Excluding adjustments, the company had a loss of -36 cents a share vs. a -3-cent loss a year ago.
Coty’s revenue fell -15.9% year-over-year to $1.415 billion, just below the FactSet consensus of $1.433 billion. Sales in the Americas and EMEA (Europe, Middle East and Africa) regions missed expectations, but Asia Pacific sales exceeded forecasts.
According to the company, despite continued disruptions to sales and short-term orders related to the COVID-19 pandemic, it will start raising commercial investments ahead of fiscal 2022. It raised its full-year cost cutting goal to $300 million.
The Stochastic Oscillator for COTY moved out of overbought territory on May 01, 2024. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 61 similar instances where the indicator exited the overbought zone. In of the 61 cases the stock moved lower. This puts the odds of a downward move at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where COTY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
COTY broke above its upper Bollinger Band on April 23, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for COTY entered a downward trend on April 23, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where COTY's RSI Indicator exited the oversold zone, of 24 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 19, 2024. You may want to consider a long position or call options on COTY as a result. In of 95 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for COTY just turned positive on April 19, 2024. Looking at past instances where COTY's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where COTY advanced for three days, in of 279 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. COTY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.406) is normal, around the industry mean (59.633). P/E Ratio (33.971) is within average values for comparable stocks, (196.255). Projected Growth (PEG Ratio) (1.933) is also within normal values, averaging (3.746). Dividend Yield (0.000) settles around the average of (0.106) among similar stocks. P/S Ratio (1.753) is also within normal values, averaging (118.390).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. COTY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a maker of beauty products, fragrances, color cosmetics and skin care products
Industry HouseholdPersonalCare