Avon Products Earnings Cheat Sheet for the Second Quarter
Results: Net income for Avon Products, Inc. rose to $206.2 million (48 cents per share) vs. $167.6 million (39 cents per share) in the same quarter a year earlier. This marks a rise of 23% from the year earlier quarter.
Revenue: Rose 8% to $2.86 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: AVP reported adjusted net income of 49 cents per share. By that measure, the company fell short of mean estimate of 50 cents per share. Analysts were expecting revenue of $2.89 billion.
Quoting Management: Andrea Jung, Avon’s Chairman and Chief Executive Officer. “We continue to expect mid-single digit revenue growth in the second half of this year, driven by our major global field activation program around our 125th anniversary. We also continue to expect significant margin expansion in the second half, resulting from gross margin improvement and revenue leverage.”
The company fell short of estimates last quarter after beating the mark the quarter before with net income of 37 cents versus a mean estimate of net income of 31 cents per share.
Net income has increased 71% year over year on average across the last five quarters. The biggest gain came in the first, when income climbed more than threefold from the year earlier quarter.
The company’s revenue has now risen for two straight quarters. In the first quarter, revenue increased 5.6% to $2.63 billion 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).
(Source: Xignite Financials)