Coty falls after weak earnings forecast, withheld annual outlook
BUZZ-Coty falls after weak earnings forecast, withheld annual outlook Updates
** Shares of CoverGirl owner Coty COTY.N fall ~8% to $2.775
** Co on Wednesday forecast current-quarter earnings below expectations and withheld its annual outlook, calling fiscal 2027 a "transition year" as it pushes ahead with a business overhaul
** RBC downgrades COTY to "sector perform" from "outperform", saying the path to sustainable growth is increasingly unclear due to the Gucci license termination, ongoing turnaround efforts, cost-cutting needs, and limited earnings visibility
* Says announcement of a new CFO also brings further uncertainty
** Co forecast Q1 adjusted earnings per share of 11 cents to 13 cents, below analysts' estimates of 14 cents - data compiled by LSEG
** 18 analysts rate the stock "hold" on average; median PT is $2.8 - data compiled by LSEG
** Up to last close, stock had fallen 1.6% YTD
(Reporting by Akriti Shah and Shania S Thomas in Bengaluru)
((akriti.shah@thomsonreuters.com ; X, formerly Twitter: @AkritiShahh))