Avon Products, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Avon Products, Inc. (NYSE:AVP) will unveil its latest earnings on Thursday, July 28, 2011. Avon Products Inc. 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 50 cents per share, a rise of 4.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 48 cents. For the year, analysts are projecting net income of $2.08 per share, a rise of 15.6% from last year.

Past Earnings Performance: The company beat estimates last quarter after falling short in the prior two. In the first quarter, the company reported profit of 37 cents per share versus a mean estimate of net income of 31 cents per share. In the fourth quarter of the last fiscal year, the company missed estimates by 8 cents.

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Wall St. Revenue Expectations: On average, analysts predict $2.89 billion in revenue this quarter, a rise of 7.8% from the year ago quarter. Analysts are forecasting total revenue of $11.81 billion for the year, a rise of 8.7% from last year’s revenue of $10.86 billion.

Analyst Ratings: Analysts seem relatively indifferent about Avon Products with nine of 16 analysts surveyed maintaining a hold rating.

Key Stats:

The company has now been profitable for the last eight quarters, and for the last four, profit has risen year over year by an average of 83%. The quarter with the biggest boost was the most recent quarter, which saw a more than threefold surge.

Revenue rose in the first quarter after seeing a drop the quarter before. Revenue rose 5.6% to $2.63 billion in the first quarter from the year earlier. In the fourth quarter of the last fiscal year, revenue fell 4.6%.

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).

Stock Price Performance: During June 23, 2011 to July 22, 2011, the stock price had risen $1.01 (3.6%) from $27.68 to $28.69. The stock price saw one of its best stretches over the last year between May 5, 2011 and May 12, 2011 when shares rose for six-straight days, rising 5.8% (+$1.66) over that span. It saw one of its worst periods between November 18, 2010 and November 30, 2010 when shares fell for eight-straight days, falling 2.9% (-84 cents) over that span. Shares are up 8 cents (+0.3%) year to date.

(Source: Xignite Financials)

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