Avon Products Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Avon Products, Inc. (NYSE:AVP) will unveil its latest earnings on Thursday, October 27, 2011. 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 net income of 46 cents per share, a rise of 12.2% 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 48 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 47 cents during the last month. For the year, analysts are projecting profit of $2.01 per share, a rise of 11.7% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the second quarter, it reported net income of 49 cents per share against a mean estimate of 50 cents. Two quarters ago, it beat expectations by 6 cents with profit of 37 cents.

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Wall St. Revenue Expectations: On average, analysts predict $2.83 billion in revenue this quarter, a rise of 6.4% from the year ago quarter. Analysts are forecasting total revenue of $11.62 billion for the year, a rise of 7% from last year’s revenue of $10.86 billion.

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

A Look Back: In the second quarter, profit rose 23% to $206.2 million (47 cents a share) from $167.6 million (39 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 6.6% to $2.86 billion from $2.68 billion.

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 63.2%. The quarter with the biggest boost was the first quarter, which saw a more than threefold surge.

The company’s revenue has risen for two straight quarters. In the first quarter, the figure rose 5.6%.

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 September 23, 2011 to October 21, 2011, the stock price had risen $3.50 (17.6%) from $19.94 to $23.44. The stock price saw one of its best stretches over the last year between October 7, 2011 and October 14, 2011 when shares rose for six-straight days, rising 12.5% (+$2.48) over that span. It saw one of its worst periods between July 26, 2011 and August 4, 2011 when shares fell for eight-straight days, falling 19% (-$5.30) over that span. Shares are down $4.85 (-17.1%) year to date.

(Source: Xignite Financials)

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