Coty drops 19% as quarterly revenue misses Wall Street expectations

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  • Coty stock fell as much as 19% on Tuesday after reporting second-quarter earnings.
  • Second-quarter revenue of $1.42 billion missed Wall Street’s estimate of $1.43 billion.
  • Adjusted earnings of $0.17 per share were better than analysts had expected.
  • Visit the Business section of Insider for more stories.

Coty dropped by as much as 19% on Tuesday after quarterly revenue fell shy of Wall Street’s targets as the ongoing COVID-19 pandemic hurt sales of makeup.

The beauty products maker, whose portfolio includes brands such as Cover Girl, Rimmel and Kylie Skin, posted fiscal second-quarter net revenue of $1.42 billion, down 16% from $1.68 billion a year ago. Analysts had expected revenue of $1.43 billion.

Coty’s stock hit an intraday low of $6.47, marking an 19% decline from Monday’s closing price. So far in 2021, the stock has lost more than 7% and has slid by 45% over the past 12 months.

The company said its cosmetics and fragrance categories within its mass-beauty business “remained pressured” during the second quarter as the number of coronavirus cases ramped up in parts of the US, “impacting both store traffic and make-up usage occasions.”

But Coty noted that it saw further strength from its prestige fragrances in the US, with the Marc Jacobs, Gucci, and Burberry brands “delivering robust growth” in the quarter ended December 31.

Adjusted earnings were $0.17 per share, higher than Wall Street’s consensus estimate of $0.07 per share but lower than $0.27 per share in the same period in 2019.

Coty said it will begin raising its commercial investments to bolster improvements ahead of fiscal year 2022 despite “continued disruptions” to its sales channels and short-term orders related to the pandemic.

Read more: An ex-Merrill Lynch ETF maven shares how to construct a portfolio that’s perfect for today’s market landscape – including 4 must-have sectors for sustainable returns

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FuboTV surges 20% after sports streaming service raises preliminary Q4 revenue guidance

FuboTV
  • FUBO shares are up over 20% on Tuesday after the company raised preliminary revenue and subscriber guidance.
  • Analysts at Needham raised their price target for FUBO to $60/share, citing the potential for a new sports gambling revenue stream within 12 months.
  • Over 80 million shares of FUBO were released from a lock-up on Dec. 30th. According to analyst Laura Martin, this, along with the improved revenue figures and business outlook, signals the bottom for the once struggling FuboTV, per SeekingAlpha.
  • Visit Business Insider’s homepage for more stories.

After a rocky start to the year on Monday, FuboTV (NYSE: FUBO) announced fourth quarter revenue and subscriber guidance Tuesday morning, and shares are surging.

Previously, the “sports-first” video-streaming platform expected revenue in the last quarter of 2020 to be between $80 million-$85 million. Tuesday’s revised figures bring that number to between $94 million-$98 million, representing a 77%-84% year-over-year increase in revenue.

Paid subscriber growth also skyrocketed some 72% year-over-year. The company expects to boast over 545,000 paid subscribers in their year-end filings. That’s an increase of more than 35,000 over their prior guidance of 500,000-510,000 subscribers.

In a press release, CEO David Gandler touched on Fubo’s 2021 goals saying the company would be “laser-focused on executing our growth strategies, which include continuing to grow advertising revenues, working to implement sports wagering into our product and further establishing FuboTV as a leader in sports and live streaming.”

This comes two weeks after Needham’s equity research team maintained its buy rating and doubled its price target for the rising sports streaming service from $30 to $60 per share.

Read more: Buy these 30 stocks that handily beat the market in 2020 and are poised for the best global returns in 2021, RBC says

Per SeekingAlpha, Needham noted the subscriber growth beat, a live sports button on Hisense’s VIDAA TVs sold at Walmart, a new gambling revenue stream within the year, along with several strong CTV industry consumer, revenue, and valuation fundamental upside drivers as their reasoning behind the bullishness.

Needham analyst Laura Martin also argued the bottom is in on FUBO after a tough 2020 due to a December 31 lockup expiration, which released 88mm shares into the open market.

Martin said in a statement, “we believe FUBO’s recent share price weakness was caused by an enormous supply/demand imbalance as 88mm shares became un-locked-up on Dec 30th, vs. less than 20mm shares in the float, and 8mm shares/day of avg trading volume.”

According to Martin, with supply-demand imbalance resolved and with new revenue figures, the outlook for Fubo is bullish.

FUBO trades around $30 per share and boasts a $2 billion market cap.

Read more: A crypto CEO breaks down why he would not be surprised to see Bitcoin and Ethereum rise at least 100% in 2021 – and says the current sell-offs are a ‘very natural and healthy thing’

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Stitch Fix soars 53% on surprise profit and accelerated customer growth amid the pandemic

stitch fix san francisco california
  • Stitch Fix soared 53% on Tuesday after the apparel matching subscription service recorded a surprise profit in its first quarter earnings.
  • Stitch Fix saw accelerated customer growth amid the pandemic and announced strong guidance that surpassed analyst estimates.
  • High short interest of 38% as a percentage of Stitch Fix’s float could be adding fuel to Tuesday’s gains.
  • Visit Business Insider’s homepage for more stories.

Stitch Fix rocketed higher by as much as 53% on Tuesday after the apparel matching subscription service delivered a surprise profit in its first quarter earnings.

The clothing style company said it saw an acceleration in new customers amid the pandemic, and announced strong guidance that surpassed analyst estimates.

Here are the key numbers:

First Quarter GAAP EPS: $0.09 versus analyst estimates of -$0.17
First Quarter Revenue: $490.42 million versus analyst estimates of $481.1 million
Active Clients: 3.8 million versus analyst estimates of 3.65 million

Read More: Deutsche Bank says you need to own these 10 transport stocks set to take off in the European recovery – including one that could gain 109%

Stitch Fix expects full-year revenue of $2.05 billion to $2.14 billion, well ahead of analyst estimates of $2.01 billion.

“We’re excited about the momentum in our business, confident in the future ahead, and we expect to deliver between 20% and 25% growth for the full year,” CEO Katrina Lake said.

The company added Dan Jedda as its new CFO, joining the company from Amazon where we was Vice President and CFO for Digital Video, Digital Music, and the Advertising and Corporate Development division.

Tuesday’s surge propelled Stitch Fix to an all-time-high. The company went public in November 2017. 

Potentially adding fuel to Tuesday’s move higher could be short investors buying back the stock to close out their losing bets. Stitch Fix has a high short interest as a percent of overall float of 38%, according to data from S3 Partners.

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