Avon Products Inc. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Avon Products, Inc. (NYSE:AVP) will unveil its latest earnings on Tuesday, February 14, 2012. Avon Products is a global manufacturer and marketer of beauty, fashion, and home products.

Avon Products, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 51 cents per share, a decline of 13.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 55 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 53 cents during the last month. For the year, analysts are projecting net income of $1.76 per share, a decline of 2.2% from last year.

Past Earnings Performance: The company has missed estimates in the last two quarters. In the third quarter, it missed the mark by 8 cents as a result of reporting profit of 38 cents against an estimate of net income of 46 cents per share. In the second quarter, the company fell short of forecasts by one cent.

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Wall St. Revenue Expectations: On average, analysts predict $3.11 billion in revenue this quarter, a decline of 2.2% from the year ago quarter. Analysts are forecasting total revenue of $11.35 billion for the year, a rise of 4.5% from last year’s revenue of $10.86 billion.

Analyst Ratings: Analysts seem relatively indifferent about Avon Products with eight of 13 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit fell 1.5% to $164.2 million (38 cents a share) from $166.7 million (38 cents a share) the year earlier, missing analyst expectations. Revenue rose 3.9% to $2.76 billion from $2.66 billion.

Key Stats:

The decrease in profit in the third quarter broke a streak of two consecutive quarters of year-over-year profit increases. Net income rose 23% in the second quarter and more than threefold in the first quarter.

Revenue has gone up for three straight quarters. It rose 6.6% in the second quarter from the year earlier and 5.6% in the first quarter.

Stock Price Performance: During December 9, 2011 to February 8, 2012, the stock price had risen $1.53 (9.2%) from $16.58 to $18.11. The stock price saw one of its best stretches over the last year between January 4, 2012 and January 11, 2012 when shares rose for six-straight days, rising 2.8% (+48 cents) over that span. It saw one of its worst periods between November 11, 2011 and November 25, 2011 when shares fell for 10-straight days, falling 11.7% (-$2.14) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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