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. Shares are up 7.96%.
Avon Products Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 160% to $0.26 in the quarter versus EPS of $0.10 in the year-earlier quarter.
Revenue: Decreased 3.56% to $2.48 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Avon Products Inc. reported adjusted EPS income of $0.26 per share. By that measure, the company beat the mean analyst estimate of $0.14. It missed the average revenue estimate of $2.51 billion.
Quoting Management: “Our first-quarter results reflect continued signs of stabilization, including early progress in our cost reduction efforts,” said Sheri McCoy, Chief Executive Officer. “I’m pleased with the performance of our Latin America and Europe, Middle East & Africa regions, particularly in Brazil and Russia. The teams there are focused on ensuring that this performance is sustainable. As for our other markets, there remains work to be done, particularly in the U.S.”
Key Stats (on next page)…
Revenue decreased 17.19% from $3 billion in the previous quarter. EPS decreased 29.73% from $0.37 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 $0.24 and has not changed. For the current year, the average estimate has moved up from a profit of $0.93 to a profit of $1.03 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)