Coty (NYSE:COTY) Shares Gap Down After Earnings Miss

Key Points

• Coty shares fell 10.4%, opening at $2.55 after the company reported adjusted EPS of a $0.02 loss, missing the $0.01-loss consensus. Net loss widened to $144.3 million.
• Fourth-quarter revenue rose 1% year over year to $1.27 billion, exceeding estimates, while operating cash flow reached $116 million and free cash flow totaled $72.6 million.
• Management described fiscal 2027 as a transition year and expects first-quarter like-for-like revenue to decline by a low- to mid-single-digit percentage; EPS guidance of $0.11–$0.13 is below the $0.14 analyst consensus.

Coty (NYSE:COTY - Get Free Report)'s stock price gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $3.03, but opened at $2.55. Coty shares last traded at $2.7150, with a volume of 4,060,523 shares traded.

The company reported ($0.02) EPS for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.01). The company had revenue of $1.27 billion for the quarter, compared to analyst estimates of $1.19 billion. Coty had a positive return on equity of 4.59% and a negative net margin of 9.20%.The business's quarterly revenue was up 1.3% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.05) earnings per share. Coty has set its Q1 2027 guidance at 0.110-0.130 EPS.

Coty News Roundup

Here are the key news stories impacting Coty this week:

• Positive Sentiment: Fiscal fourth-quarter revenue rose 1% year over year to $1.27 billion, exceeding estimates by approximately $70 million. Both Prestige and Consumer Beauty revenue increased 1%, supported by resilient fragrance and cosmetics demand. Coty beats quarterly revenue, calls fiscal 2027 transition year
• Positive Sentiment: Cash generation was a key bright spot: fourth-quarter operating cash flow reached $116 million and free cash flow was $72.6 million. Fiscal-year free cash flow totaled $348.2 million, helping support the company during its restructuring. Coty fiscal 2026 results
• Positive Sentiment: Coty will transition the Gucci Beauty license back to Kering in a deal expected to provide $400 million, plus additional inventory proceeds. The cash could improve financial flexibility and sharpen management’s focus on core brands. Coty Q4 revenue rises as net loss reaches $144.3 million
• Neutral Sentiment: Coty appointed Soraya Benchikh as chief financial officer, effective September 1, succeeding Laurent Mercier. The change follows a new operating structure and could influence execution of the company’s transformation strategy. Coty appoints Soraya Benchikh chief financial officer
• Negative Sentiment: Adjusted EPS was a loss of $0.02, missing the $0.01-loss consensus, while reported net loss widened to $144.3 million. Fiscal-year revenue fell 2% to $5.81 billion and the company remained unprofitable. Coty stock slips after wider-than-expected Q4 loss
• Negative Sentiment: Management called fiscal 2027 a transition year and expects first-quarter like-for-like revenue to decline by a low- to mid-single-digit percentage. First-quarter EPS guidance of $0.11–$0.13 is below the $0.14 analyst consensus, pressuring the near-term outlook. Coty guides for first-quarter sales decline

Wall Street Analyst Weigh In

COTY has been the subject of a number of recent analyst reports. Morgan Stanley set a $2.50 target price on Coty in a report on Thursday, May 7th. TD Cowen increased their price target on shares of Coty from $2.30 to $2.90 and gave the company a "hold" rating in a report on Thursday, May 7th. Citigroup raised their price objective on shares of Coty from $2.50 to $2.80 and gave the company a "neutral" rating in a research note on Thursday, May 7th. Weiss Ratings restated a "sell (e+)" rating on shares of Coty in a research report on Friday, August 7th. Finally, Royal Bank Of Canada lowered shares of Coty from an "outperform" rating to a "sector perform" rating and set a $3.00 target price on the stock. in a research report on Thursday. Fourteen equities research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, Coty presently has an average rating of "Reduce" and a consensus target price of $3.35.

Institutional Trading of Coty

Institutional investors and hedge funds have recently bought and sold shares of the company. Corient Private Wealth LLC boosted its position in Coty by 16.6% during the 2nd quarter. Corient Private Wealth LLC now owns 16,062 shares of the company's stock valued at $75,000 after purchasing an additional 2,286 shares during the period. Public Employees Retirement System of Ohio increased its stake in shares of Coty by 3.2% in the third quarter. Public Employees Retirement System of Ohio now owns 117,781 shares of the company's stock worth $476,000 after purchasing an additional 3,616 shares during the period. Osaic Holdings Inc. raised its stake in shares of Coty by 30.5% in the second quarter. Osaic Holdings Inc. now owns 15,795 shares of the company's stock worth $73,000 after acquiring an additional 3,689 shares during the last quarter. Aigen Investment Management LP raised its position in shares of Coty by 6.1% during the fourth quarter. Aigen Investment Management LP now owns 76,048 shares of the company's stock worth $234,000 after acquiring an additional 4,357 shares during the last quarter. Finally, Wells Fargo & Company MN grew its holdings in Coty by 23.5% during the 4th quarter. Wells Fargo & Company MN now owns 24,525 shares of the company's stock worth $76,000 after acquiring an additional 4,662 shares during the period. Institutional investors and hedge funds own 42.36% of the company's stock.

Coty Trading Down 10.4%

The firm has a market capitalization of $2.39 billion, a price-to-earnings ratio of -4.40, a PEG ratio of 0.79 and a beta of 0.97. The business has a 50 day moving average of $2.43 and a 200 day moving average of $2.36. The company has a debt-to-equity ratio of 0.97, a current ratio of 0.82 and a quick ratio of 0.49.

Coty Company Profile

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.

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