Coty stock gains after profit and revenue topped expectations, outlook nudged higher

Shares of Coty Inc.
rose 0.3% in premarket trading, after the beauty products company reported fiscal third-quarter profit and revenue that topped expectations, amid strength in its Prestige and Consumer Beauty segments, and raised its full-year outlook. For the quarter to March 31, the company swung to net income of $50.3 million, or 6 cents a share, from a loss of $18.5 million, or breakeven on a per-share basis in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 3 cents topped the FactSet consensus of 2 cents. Revenue grew 15.4% to $1.19 billion, above the FactSet consensus of $1.15 billion. Prestige revenue rose 20.8% to $726.4 million and consumer beauty revenue increased 7.8% to $459.8 million. Cost of sales rose 8.0%, less than sales growth, to $423.1 million, as gross margin improved to 64.3% from 61.9%. For fiscal 2022, the company raised its adjusted EPS guidance range to 23 cents to 27 cents from 22 cents to 26 cents, which compares with the FactSet consensus of 27 cents. The stock has tumbled 30.7% year to date through Friday, while the S&P 500
has declined 13.5%.


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