Why Beauty Company Coty's Shares Are Gaining Today
Portfolio Pulse from Shivani Kumaresan
Coty Inc's shares rose after reporting Q3 FY24 sales growth of 8% to $1.386 billion, surpassing analyst estimates. Growth was seen across all regions and product categories, with e-commerce revenue up nearly 20%. However, adjusted EPS missed estimates by $0.01. The company expects FY24 LFL revenue growth at the high end of its 9%-11% guidance and adjusted EPS at the higher end of $0.44-$0.47. Despite positive sales growth, operating cash flow was negative.

May 07, 2024 | 10:32 am
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Coty Inc reported a strong Q3 FY24 with sales growth of 8% to $1.386 billion, surpassing analyst expectations. The company saw growth across all regions and categories, with e-commerce revenue up nearly 20%. However, adjusted EPS was slightly below estimates, and the company reported negative cash flow.
Coty's share price increase is likely due to the reported sales growth and positive outlook for FY24, indicating strong business performance and future potential. The slight miss on adjusted EPS and negative cash flow may temper some investor enthusiasm, but the overall positive sales growth and outlook are likely to have a more significant impact on investor sentiment in the short term.
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