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Summary
- Estée Lauder’s stock recently rallied to its 52-week high of US$318.34.
- Shares of New York-based cosmetics company Coty are up 27 percent this year.
NYSE-listed Estée Lauder Companies Inc. (NYSE:EL) and Coty Inc. (NYSE:COTY) are among the major U.S.-based cosmetics companies that have registered solid quarterly earnings growth and share price recently.
With brick-and-mortar stores closed last year, the demand for beauty products remained low in 2020. Both the companies saw volatile trading sessions in the previous year and reported a significant impact from the coronavirus pandemic in the comparable quarter.
However, Estée Lauder swung to profit in the fiscal third quarter ended March 31 while Coty narrowed its loss. The same has been the case with their stocks, which are on a growth trajectory this year.
Here, we explore the companies’ share performance as well as their latest financials.
Estée Lauder
The New York-based makeup company’s shares are up 14.3 percent year to date. The stock price rose around 29 percent last year but hit its 52 week low of US$158.25 in 2020.
The shares, which recently rallied to its 52-week high of US$318.34 a few weeks ago, closed at US$298.39 on Monday.
Last week, Estée Lauder said its fiscal third-quarter net sales grew 16 percent year over year to US$3.86 billion.
Net income in the quarter totaled US$456 million, or US$1.24 per share, compared with a net loss of US$6 million, or 2 cents per share, in the previous year quarter. Non-GAAP EPS came in at US$1.62, against 87 cents in the year-ago quarter.
Source: Pixabay
For the full fiscal year 2021 ending June 30, Estée Lauder projects net sales to grow between 11 percent and 12 percent.
Diluted EPS is forecasted to increase up to 33 percent to the range of US$5.31 to US$5.48, while non GAAP EPS is expected to grow up to 49 percent to the range of US$6.05 to US$6.15.
Coty Inc.
Shares of Coty grew over 27 percent year to date. It has 52-week range of US$2.65 to US$10.49. The stock price lost around 36 percent in 2020.
However, the stock fell 12.96 percent to US$9 on Monday after the New York-based cosmetics company said its net sales declined 3.3 percent year over year to US$1.03 billion in the fiscal third quarter ended March 31.
But Coty managed to narrow its third-quarter net loss to US$1.2 million, compared with a net loss of US$311.0 million in the same quarter last year.
The company also posted an adjusted net income of US$2.3 million for the three months, against an adjusted net loss of US$104.7 million in the year-ago quarter.
Meanwhile, the company anticipates its net revenue in fiscal 2021 to be between US$4.5 billion and US$4.6 billion. Coty targets to cuts costs by approximately US$300 million in the fiscal year and save US$600 million through fiscal year 2023.
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