Diamonds and Dogs
Coty (COTY) looking for a turnaround. The Cosmetics maker is up 5% following earnings and raising annual revenue forecasts as it embarks on a multi-year turnaround plan that involves cost cuts and increased investment in advertising. The company said in July it would write down about $3 billion in value of brands acquired from Procter & Gamble Co in 2016 and laid out a restructuring plan to turn around the business hurt by falling sales in its consumer beauty unit. The plan involves reducing organizational layers and reorganizing the operation into regional units with new business heads. Coty expects to incur restructuring costs of about $300 million during the year.
Autodesk (ADSK) not on autopilot. The computer-aided-design software firm is down 6% following earnings. Autodesk actually beat estimates as sales rose 30% to $796.8 million, but then reduced its full year outlook, hinting that the company's broad exposure to the construction and manufacturing segments of the economy could pose risks to financial performance. Management said, due to the current trade tensions and macro uncertainty, Autodesk would take a more conservative stance on guidance into year end. This may be a common theme come October.