Coty Q2 Profit Tops Estimates; Stock Up

(RTTNews) - Coty Inc. (COTY) reported that its second-quarter net loss narrowed to $21.1 million or $0.03 per share from $960.6 million or $1.28 per share in the prior-year period.

Adjusted net income was $205.2 million or $0.27 per share, compared to $181.9 million or $0.24 per share last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.24 per share. Analysts' estimates typically exclude special items.

In the Wednesday pre-market trade, COTY is trading at $11.00 up $0.36 or 3.38 percent.

Operating income was $35.4 million compared to an operating loss of $804.6 million last year, due to the $965 million impairment charge in the prior year partially offset by an increase in the restructuring charges.

Quarterly net revenues were $2.35 billion, decreased 6.6% year-over-year, including a negative foreign exchange impact of 1.6%. Like-for-like or LFL revenue decreased 1.4%. The LFL performance was driven by a decline in the Consumer Beauty division of 6.7% LFL, partially offset by solid growth in the Professional Beauty and Luxury divisions of 2.2% and 1.3% LFL, respectively.

For fiscal 2020, the company still expects adjusted earnings per share to grow in mid-single digit, and net revenues to be stable to slightly lower like-for-like.

Coty declared a quarterly cash dividend of $0.125 per common share, payable on March 27, 2020, to shareholders of record on February 18, 2020.