Stock Monitor: e.l.f. Beauty Post Earnings Reporting

LONDON, UK / ACCESSWIRE / March 12, 2018 / Active-Investors.com has just released a free earnings report on Coty Inc. (NYSE: COTY). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=COTY. The Company reported its second quarter fiscal 2018 operating and financial results on February 08, 2018. The beauty products Company exceeded top- and bottom-line expectations. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for e.l.f. Beauty, Inc. (NYSE: ELF), which also belongs to the Consumer Goods sector as the Company Coty. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Coty most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=COTY

Earnings Highlights and Summary

For the three months ended December 31, 2017, Coty's net revenues increased 14.8% to $2.64 billion compared to $2.30 billion in Q2 FY17. The Company's revenues grew 10.3% on a constant currency basis, reflecting a contribution from Younique, Burberry, and two months of ghd of 7.5%; and an increase in the underlying business of 2.8%. Coty's revenue numbers beat analysts' estimates of $2.47 billion.

During Q2 FY18, Coty's gross margin remained flat at 61.1% on a y-o-y basis, while its adjusted gross margin declined to 61.6% in the reported quarter from 63.6% in the year ago same period, primarily attributable to a positive momentum in the Company's emerging business, Consumer Beauty.

For Q2 FY18, Coty's operating income increased to $174.4 million from an operating loss of $12.7 million in Q2 FY17, primarily due to higher reported net revenues and lower acquisition costs. The Company's adjusted operating income advanced 12.8% to $347.5 million in the reported quarter from $308.0 million in Q2 FY17, driven by improved net revenues and tight cost controls.

Coty reported a net income of $109.2 million, or $0.15 per diluted share, in Q2 FY18 compared to $46.8 million, or $0.06 per diluted share, in Q2 FY17, driven by a higher operating income, but partially offset by a lower tax benefit.

For Q2 FY18, Coty's adjusted net income increased to $237.2 million, or $0.32 per diluted share, from $223.3 million, or $0.30 per diluted share, in Q2 FY17, reflecting a higher adjusted operating income. The Company's earnings numbers beat Wall Street's estimates of $0.24 per share.

Segment Results

During Q2 FY18, Coty's Luxury segment's revenues jumped 13.9% to $951.2 million compared to $835.0 million in Q2 FY17, and 9.1% on a constant currency basis, reflecting a growth in the underlying business of 8.1%, driven by the on-going success of the debut Tiffany & Co. and Gucci Bloom fragrance launches, as well as a growth in Chloe, and a contribution from Burberry of 1.0%. The segment's adjusted operating income surged 28.5% to $125.4 million from $97.5 million in the prior year's comparable quarter.

For Q2 FY18, Coty's Consumer Beauty segment's net revenues rose 13.7% to $1.14 billion on a reported basis, and 9.8% on a constant currency basis. The increase in constant currency represented a contribution from Younique of 11.1%, and a marginal decline in the underlying business of 1.3%. The segment's adjusted operating income rose 19.4% to $131.9 million from $110.5 million in the year earlier corresponding quarter.

Coty's Professional segment reported net revenues of $547.8 million in Q2 FY18, up 19.1% y-o-y on a reported basis, and 13.6% on a constant currency basis. The increase in constant currency reflected a contribution from ghd of 11.6% and a growth in the underlying business of 2.0%. The segment's adjusted operating income fell 9.8% to $90.2 million in the reported quarter versus $100.0 million in the prior year's same quarter.

Cash Matters

During Q2 FY18, Coty's net cash from operating activities was $316.7 million compared to $678.4 million in Q2 FY17, largely due to a one-time benefit associated with the ramp up of accounts payable and accrued expenses following the close of the acquisition of the P&G Beauty business. The Company's free cash flow was $195.9 million in the reported quarter versus $567.0 million in the prior year's comparable quarter from lower cash from operations.

As on December 31, 2017, Coty's cash and cash equivalents decreased by $135.3 million to $400.1 million compared to June 30, 2017. As of December 31, 2017, the Company's total debt increased by $302.2 million to $7.52 billion, while its net debt increased by $437.5 million to $7.12 billion from the balance as on June 30, 2017.

Stock Performance Snapshot

March 09, 2018 - At Friday's closing bell, Coty's stock slightly advanced 0.41%, ending the trading session at $19.40.

Volume traded for the day: 5.60 million shares, which was above the 3-month average volume of 5.02 million shares.

Stock performance in the last month ? up 10.98%; previous three-month period ? up 10.04%; past six-month period ? up 18.65%; and last twelve month ? up 3.80%

After last Friday's close, Coty's market cap was at $14.48 billion.

The stock has a dividend yield of 2.58%.

The stock is part of the Consumer Goods sector, categorized under the Personal Products industry. This sector was up 0.7% at the end of the session.

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