Why Coty Stock Fell 15% at the Open Today
Share of makeup and perfume maker Coty (NYSE: COTY) fell as much as 15% in the first hour of trading on Tuesday. As of 11:14 a.m. EST, the stock remained down by 14.5%. The main news here was the consumer discretionary company's fiscal second-quarter 2021 earnings release. Investors weren't pleased, but the picture was mixed.
For the period, which ended Dec. 31, Coty reported adjusted earnings of $0.17 per share, helped by a 40% increase in online sales. That easily beat the $0.07 per share that analysts had been expecting. Normally a beat like that would get investors excited and the stock in question would rise. However, Coty's top line was slightly behind Wall Street's consensus expectation. Year over year, its sales decline amounted to around 16%, with particular weakness in Europe and Asia, during a key selling period. Investors were clearly displeased.
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Source Fool.com
