Coty stock rises premarket after earnings beat

Coty Inc.'s stock (COTY) rose 1.1% premarket Tuesday, after the beauty and fragrance company posted better-than-expected earnings for its fiscal third quarter. New York-based Coty had net income of $105.1 million, or 12 cents a share, for the quarter to March 31, up from $50.3 million, or 6 cents a share, in the year-earlier period. Adjusted per-share earnings came to 19 cents, ahead of the 3 cent FactSet consensus. Revenue rose to $1.289 billion from $1.186 billion, also ahead of the $1.226 billion FactSet consensus. Revenue was driven by demand for prestige fragrances and retailer restocking. "During the quarter, consumer demand for prestige fragrances accelerated to mid-teens growth, from the already strong high-single-digit growth of the previous quarter, highlighting the structural changes in consumer behavior which are fueling growth in category penetration, increasing consumer usage, and overall premiumization," the company said in a statement. The company is now expecting fiscal 2023 revenue, adjusted for the Russia exit. to grow 9% to 10%, on a like-for-like basis, up from prior guidance of 5% to 8%. The stock has gained 41% in the year to date, while the S&P 500 has gained 8%.

-Ciara Linnane

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05-09-23 0701ET

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