COTY - Coty stock carries higher on earnings beat raised profit forecasts

2023-05-09 07:50:12 ET

Coty ( NYSE: COTY ) shares carried higher on Tuesday after topping earnings expectations for the fiscal third quarter.

The cosmetics and beauty company notched $0.19 in earnings per share for the quarter, $0.14 above the Street consensus. Meanwhile, an 8.4% rise in revenue to $1.29B outpaced expectations by $60M. Adjusted operating income increased 8% to $122.7M year over yer as operating margins expanded 180 basis points aided by pricing actions.

“In a complex global environment, beauty remains an advantaged category with consumers, at the sweet spot of affordable luxury, self-care, and confidence boosting,” CEO Sue Nabi said. “This dynamic reinforces our confidence in global beauty consumption outperforming in a variety of macroeconomic scenarios, with Coty well placed to succeed, supported by our positions as a leader in fragrances and cosmetics, and significant untapped potential in skincare, China and Travel Retail.”

The company expects to continue margin expansion into Q4 despite macroeconomic turmoil, aided by “mid-single-digit pricing increases exiting Q1 and another round of mid-single-digit pricing exiting Q3.” Another round of price hikes is due for Q1 2024. The company now expects adjusted EPS of $0.38 to 0.39 for the full year, an increase from its previous adjusted EPS guidance of $0.35 to $0.36. The consensus expectations stands at $0.38.

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