Avon Products Earnings: Here’s Why the Stock is Popping Now

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 over 10%.

Avon Products Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 117.65% to $0.37 in the quarter versus EPS of $0.39 in the year-earlier quarter.

Revenue: Decreased 2.88% to $2.96 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Avon Products Inc. reported adjusted EPS income of $0.37 per share. By that measure, the company beat the mean analyst estimate of $0.27. It missed the average revenue estimate of $3 billion.

Quoting Management: “2012 was a challenging year for Avon, but I’m encouraged to see that the overall business is showing early signs of stabilization,” said Sheri McCoy, Chief Executive Officer. “We have a lot of work ahead of us, but I am confident that in 2013, we will see progress against our three-year financial goals.”

Key Stats (on next page)…

Revenue increased 15.88% from $2.55 billion in the previous quarter. EPS increased 117.65% from $0.17 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 $0.13 and has not changed. For the current year, the average estimate has moved down from a profit of $0.78 to a profit of $0.76 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)