Avon Products Inc. (NYSE:AVP) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Avon Products Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 45% to $0.29 in the quarter versus EPS of $0.20 in the year-earlier quarter.
Revenue: Decreased 3.23% to $2.51 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Avon Products Inc. reported adjusted EPS income of $0.29 per share. By that measure, the company beat the mean analyst estimate of $0.25. It missed the average revenue estimate of $2.58 billion.
Quoting Management: “Our second-quarter results reflect continued progress in stabilizing Avon’s business,” said Sheri McCoy, Chief Executive Officer. “There is still significant work to be done to deliver sustainable performance in the near and longer term, but I’m pleased with the progress to date. We will succeed by continuing our focus on better serving Avon Representatives, creating a compelling consumer proposition, and simplifying our business to drive both top and bottom line improvements.”
Key Stats (on next page)…
Revenue increased 0.98% from $2.48 billion in the previous quarter. EPS increased 11.54% from $0.26 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.25 and has not changed. For the current year, the average estimate has moved up from a profit of $1.14 to a profit of $1.16 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)