Coty Reports Strong Q4 Earnings, Sales

Coty Inc

reported its earnings results for the fourth quarter. The company delivered more than the expected adjusted earnings driven by solid sales number. After missing the Street estimate in the third quarter, its earnings exceeded by miles in the fourth quarter. 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. Commenting on the results, 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 that 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.