Coty Declared an Annual Dividend of $0.28 Per Share



Price movement

Coty (COTY) has a market cap of $9.0 billion. It rose by 0.15% to close at $26.91 per share on August 1, 2016.

The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.79%, 3.5%, and 5.0%, respectively, on the same day. COTY is trading 0.02% above its 20-day moving average, 1.7% above its 50-day moving average, and 0.68% below its 200-day moving average.

Article continues below advertisement

Related ETF and peers

The AdvisorShares TrimTabs Float Shrink ETF (TTFS) invests 0.93% of its holdings in Coty. The ETF aims to outperform broad US equities. The actively managed, equal-weighted fund selects stocks based on trends in outstanding shares, company leverage, and free cash flow. The YTD price movement of TTFS was 6.1% on August 1.

The market caps of Coty’s competitors are as follows:

  • The Procter & Gamble Company (PG) — $232.3 billion
  • Walgreens Boots Alliance (WBA) — $86.0 billion
  • The Estée Lauder Companies (EL) — $34.2 billion

Coty declared a dividend

Coty has declared an annual dividend of $0.28, a rise of 10%, on its Class A and Class B common stock. The dividend will be paid on August 19, 2016, to shareholders of record at the close of business on August 11, 2016.

Article continues below advertisement

Performance of Coty in fiscal 3Q16

Coty reported fiscal 3Q16 net revenue of $950.7 million, 1.8% higher than its $933.8 million in revenue in fiscal 3Q15. Revenue from its fragrances and skin and body Care segments fell by 3.7% and 11.6%, respectively, in fiscal 3Q16. However, revenue from its color cosmetics segment rose by 11.2% in fiscal 3Q16 compared to fiscal 3Q15.

Coty also reported revenue of $14.3 million from its Brazilian beauty business acquisition in fiscal 3Q16. The company’s cost of sales as a percentage of net revenue rose by 2.9%, and its operating income fell by 79.9% in fiscal 3Q16 compared to 3Q15. Coty also reported restructuring costs and acquisition-related costs of $6.6 million and $37.0 million, respectively, in fiscal 3Q16, compared to $3.9 million and $0.3, respectively, in fiscal 3Q15.

Net income and EPS

Coty’s net income and EPS (earnings per share) fell to -$26.8 million and -$0.08, respectively, in fiscal 3Q16, compared to $75.5 million and $0.21, respectively, in fiscal 3Q15.

Coty’s cash and cash equivalents and inventories rose by 7.4% and 3.8%, respectively, in fiscal 3Q16 compared to fiscal 4Q15. Its current ratio fell to 1.1x, and its debt-to-equity ratio rose to 14.3x in fiscal 3Q16, compared to a current ratio and a debt-to-equity ratio of 1.2x and 5.0x, respectively, in fiscal 4Q15.

Next, we’ll discuss Silgan Holdings.


More From Market Realist