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Coty Reports Strong Q4 Earnings, Sales

COTY

Coty Inc (NYSE: COTY) reported earnings results for the fourth quarter. The company delivered better than the expected adjusted earnings driven by solid sales number.

The company reported a net loss of $31.0 million or a loss of $0.09 a share in the fourth quarter. On an adjusted basis, the company would have earned $45.7 million or EPS of $0.13, which was $0.07 a share higher than the Street estimate of $0.06 a share. Last year, it earned $0.08 a share.

Coty recorded 6 percent growth in net revenues to $1.075 billion, which was higher than the analysts' predictions of $1.05 billion. The company's Like-for-like recorded a drop of one percent.

Chairman and Interim CEO, Bart Becht, said, "Fiscal 2016 showed our continued progress in our strategy of building a healthier and better business. In support of this strategy, we are actively preparing for the transformational merger with the P&G Beauty Brands business."

Moving ahead to fiscal year 2017, the company indicated it was too early to talk about the forecast of the combined business. On a stand-alone basis, the company expects improvement in net revenue momentum on a constant currency basis from the second half of the year.

The stock closed Monday's trading at $29.75, up $0.78, or 2.69 percent.

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