Have you assessed how the international operations of Coty (COTY) performed in the quarter ended December 2025? For this beauty products company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
In our recent assessment of COTY's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter amounted to $1.68 billion, marking an increase of 0.5% from the year-ago quarter. We will next turn our attention to dissecting COTY's international revenue to get a clearer picture of how significant its operations are outside its main base.
A Look into COTY's International Revenue Streams
EMEA generated $864.2 million in revenues for the company in the last quarter, constituting 51.5% of the total. This represented a surprise of +1.38% compared to the $852.4 million projected by Wall Street analysts. Comparatively, in the previous quarter, EMEA accounted for $754.8 million (47.9%), and in the year-ago quarter, it contributed $839.8 million (50.3%) to the total revenue.
Of the total revenue, $189.9 million came from Asia Pacific during the last fiscal quarter, accounting for 11.3%. This represented a surprise of +6.63% as analysts had expected the region to contribute $178.1 million to the total revenue. In comparison, the region contributed $172.8 million, or 11%, and $191.5 million, or 11.5%, to total revenue in the previous and year-ago quarters, respectively.
Prospective Revenues in International Markets
Wall Street analysts expect Coty to report $1.34 billion in total revenue for the current fiscal quarter, indicating an increase of 2.9% from the year-ago quarter. EMEA and Asia Pacific are expected to contribute 47.9% (translating to $640.5 million), and 11.5% ($153.34 million) to the total revenue, respectively.
Analysts expect the company to report a total annual revenue of $5.89 billion for the full year, marking a decrease of 0.1% compared to last year. The expected revenue contributions from EMEA and Asia Pacific are projected to be 48.3% ($2.85 billion), and 11.6% ($684.76 million) of the total revenue, in that order.
Key Takeaways
Coty's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
At the moment, Coty has a Zacks Rank #3 (Hold), signifying that its performance may align with the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Assessing Coty's Stock Price Movement in Recent Times
The stock has witnessed a decline of 16.6% over the past month versus the Zacks S&P 500 composite's a decrease of 0.2%. In the same interval, the Zacks Consumer Staples sector, to which Coty belongs, has registered an increase of 14.3%. Over the past three months, the company's shares saw a decrease of 24%, while the S&P 500 increased by 3.4%. In comparison, the sector experienced an increase of 13.8% during this timeframe.
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Coty (COTY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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