Coty (COTY) - Get Report on Wednesday posted adjusted fiscal fourth-quarter earnings that matched analysts' forecasts as the company continued to focus on revamping its operations in an effort to cut debt and return to profitability.
The Cover Girl and Rimmel brand maker posted adjusted fiscal fourth-quarter net income of $123.6 million, or 16 cents a share, vs. an adjusted loss of $181.3 million, or 24 cents a share, in the comparable year-ago quarter.
The per-share results matched the 16-cent average estimate of analysts polled by FactSet. Fourth-quarter sales came in at $2.1 billion, also matching analysts' forecasts.
Coty in July announced a major restructuring involving charges and other steps designed to reduce debt and improve profitability. The company said that as part of a four-year turnaround it expected to report an impairment of intangible assets of $3 billion, with fiscal 2019 earnings reflecting the final amount.
That showed in its full-year numbers, with Coty posting a net loss of $2.8 billion, or $5.04 a share, vs. a loss of $181.3 million, or 23 cents a share, a year earlier.
On an adjusted basis, however, the company posted net income of $487.6 million, or 65 cents a share, 1 cent above the 64 cents expected by analysts polled by FactSet. Sales came in at $8.65 billion.
"Our plan will deliver gradually, but we expect dynamics to start changing as soon as this upcoming year, as reflected in our targets for FY20," Coty CEO Pierre Laubies said in a statement.
For fiscal 2020, Coty said it expects "stable to slightly lower" net sales beginning in its fiscal first quarter, with adjusted operating income growth of between 5% and 10% and adjusted per-share earnings in the "mid-single" digits.
Shares of Coty gained 4.2% to $9.17 in early trading on Wednesday.
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