Coty (NYSE:COTY) Issues Earnings Results

Coty (NYSE:COTY) announced its earnings results on Wednesday. The company reported ($0.02) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.01) by ($0.01), Zacks reports. Coty had a negative net margin of 9.20% and a positive return on equity of 4.59%. Coty updated its Q1 2027 guidance to 0.110-0.130 EPS.

Coty Stock Performance

NYSE COTY traded up $0.30 on Wednesday, hitting $3.04. 15,506,766 shares of the company traded hands, compared to its average volume of 9,721,886. The business’s 50 day moving average price is $2.41 and its 200-day moving average price is $2.36. Coty has a 52-week low of $1.82 and a 52-week high of $4.93. The company has a current ratio of 0.82, a quick ratio of 0.49 and a debt-to-equity ratio of 0.97. The company has a market capitalization of $2.68 billion, a price-to-earnings ratio of -4.91, a P/E/G ratio of 0.82 and a beta of 0.97.

Key Coty News

Here are the key news stories impacting Coty this week:

• Positive Sentiment: Fourth-quarter revenue rose 1% to approximately $1.27 billion, exceeding consensus expectations by about $70 million. Demand for fragrances and cosmetics supported growth in both Prestige and Consumer Beauty. Coty beats quarterly revenue, calls fiscal 2027 transition year
• Positive Sentiment: Cash generation was a key bright spot. Coty reported $116 million in fourth-quarter operating cash flow and $72.6 million in free cash flow; fiscal-year free cash flow reached $348.2 million, helping offset operational headwinds. Coty Announces Fourth Quarter Fiscal Year 2026 Results
• Positive Sentiment: The transition of the Gucci Beauty license back to Kering is expected to provide Coty with approximately $400 million in proceeds, plus inventory-related proceeds, potentially supporting deleveraging and portfolio investment. Coty Beats Q4 Expectations as Cash Flow Strength Offsets Strategic Portfolio Shake-Up
• Neutral Sentiment: Coty appointed Soraya Benchikh as chief financial officer, effective September 1, succeeding Laurent Mercier. The change is part of a broader operating overhaul intended to bring decisions closer to local markets and streamline operations. Coty Appoints Soraya Benchikh Chief Financial Officer
• Negative Sentiment: Non-GAAP earnings per share were a loss of $0.02, missing the $0.01 loss expected by analysts. Reported diluted loss per share was $0.16, while the full-year net loss widened to $618 million. Coty Stock Slips After Wider-Than-Expected Q4 Loss
• Negative Sentiment: Management characterized fiscal 2027 as a transition year and expects first-quarter like-for-like revenue to decline by a low- to mid-single-digit percentage. Adjusting the brand portfolio and completing the strategic review could weigh on growth in the near term. Coty Looks to Finish Strategic Review, Guides for First-Quarter Sales Decline
• Negative Sentiment: A shareholder litigation firm is investigating alleged investor disclosures and fiduciary-duty issues related to slowing growth, weaker Consumer Beauty performance, margin pressure, and decelerating Prestige growth. Kuehn Law investigation of Coty

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. Corient Private Wealth LLC bought a new position in shares of Coty during the 4th quarter valued at approximately $43,000. Virtu Financial LLC raised its stake in Coty by 195.8% during the 4th quarter. Virtu Financial LLC now owns 61,367 shares of the company’s stock worth $189,000 after acquiring an additional 40,619 shares during the period. Invesco Ltd. raised its stake in Coty by 68.2% during the 4th quarter. Invesco Ltd. now owns 3,848,538 shares of the company’s stock worth $11,853,000 after acquiring an additional 1,560,387 shares during the period. Alberta Investment Management Corp purchased a new position in Coty during the fourth quarter valued at approximately $1,059,000. Finally, XTX Topco Ltd purchased a new position in Coty during the fourth quarter valued at approximately $727,000. Institutional investors own 42.36% of the company’s stock.

Wall Street Analysts Forecast Growth

COTY has been the topic of a number of research reports. Citigroup raised their price target on Coty from $2.50 to $2.80 and gave the stock a “neutral” rating in a research note on Thursday, May 7th. Morgan Stanley set a $2.50 target price on Coty in a report on Thursday, May 7th. Weiss Ratings reissued a “sell (e+)” rating on shares of Coty in a research report on Friday, August 7th. TD Cowen boosted their price target on Coty from $2.30 to $2.90 and gave the company a “hold” rating in a research note on Thursday, May 7th. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating on shares of Coty in a research report on Tuesday. One investment analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, Coty presently has a consensus rating of “Reduce” and an average price target of $3.70.

About Coty

Coty Inc is a multinational beauty company specializing in the development, manufacturing and marketing of fragrances, color cosmetics and skin and body care products. Established in 1904 by François Coty in Paris, the company has grown through a blend of organic innovation and strategic acquisitions to become one of the leading players in the global beauty industry. Coty’s portfolio encompasses a broad range of consumer and luxury brands, reflecting its commitment to catering to diverse consumer preferences and market segments.

The company’s product offerings span three main divisions: Coty Luxury, Coty Consumer Beauty and Coty Professional Beauty.