Avon Products Earnings Cheat Sheet: Threefold Rise in Profits

S&P 500 (NYSE:SPY) component Avon Products, Inc. (NYSE:AVP) reported net income above Wall Street’s expectations for the first quarter. Avon Products Inc. is a global manufacturer and marketer of beauty, fashion and home products.

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Avon Products Earnings Cheat Sheet for the First Quarter

Results: Net income for the personal products company rose to $143.6 million (33 cents/share) vs. $42.5 million (10 cents/share) in the same quarter a year earlier. A more than threefold rise from the year earlier quarter.

Revenue: Rose 5.6% to $2.63 billion YoY.

Actual vs. Wall St. Expectations: AVP reported adjusted net income of of 37 cents/share. By that measure, the company beat the mean estimate of 31 cents/share. Estimates ranged from 26 cents per share to 35 cents per share.

Quoting Management: “We are pleased with the early progress against our commitment to return the business to mid-single digit revenue growth and deliver 50-70 basis points of operating margin expansion in 2011,” said Andrea Jung, Avon’s Chairman and Chief Executive Officer. “We are squarely focused on restoring growth in Brazil and Russia in the second half, and ensuring execution in gross margin improvement and cost control.”

Key Stats: Net income has increased 53.6% year over year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed more than threefold from the year earlier quarter.

Competitors to Watch: The Estee Lauder Companies Inc. (NYSE:EL), Revlon, Inc. (NYSE:REV), Alberto-Culver Company (NYSE:ACV), Nu Skin Enterprises, Inc. (NYSE:NUS), Inter Parfums, Inc. (NASDAQ:IPAR), Colgate-Palmolive Company (NYSE:CL), USANA Health Sciences, Inc. (NASDAQ:USNA), Elizabeth Arden, Inc. (NASDAQ:RDEN), Herbalife Ltd. (NYSE:HLF), and Parlux Fragrances, Inc. (NASDAQ:PARL)

Stock Performance: Shares of AVP are up to $30.50 per share, or 3.15%, from the previous close of $29.57.


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