Earnings Preview: Avon Products' EPS, Revenue Expected to Rise
Avon Products (NYSE: AVP) announces its next round of earnings this Thursday, October 27, 2011. Get the latest predictions in Benzinga's essential guide to the company's third quarter earnings report.
Earnings and Revenue:
Analysts are predicting an EPS reading of 46 cents/share and revenues of $2.83 billion. Avon Products' latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 41 cents/share on revenues of $2.66 billion. We'll know on Thursday whether Avon Products has managed the estimated 12.2% increase in EPS and 6.4% rise in revenues on a year-over-year basis.
Here's how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q2 | Q1 | Q4 | Q3 |
| EPS Estimate | $0.50 | $0.31 | $0.67 | $0.47 |
| EPS Actual | $0.49 | $0.37 | $0.59 | $0.41 |
Stock Performance:
Shares of Avon Products were trading at $23.85 as of October 24, 2011. Since January 1st, shares of Avon Products have declined 15.7%. For a full 12 months, the return has declined by 22.5%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.
- Long-term shareholders are already wary of 12-month losses prior to the announcement
Average Stock Rating:
The average rating by analysts for Avon Products is a Hold. The strength of this rating has declined slightly over the past three months.
Competitors:
Want to check out the performance of Avon Products closest competitors? Take a look at some of the company's peers in the consumer staples sector.
- Colgate-Palmolive Company (NYSE: CL): Hold with a $1.26 recent quarter EPS
- Estee Lauder Companies (NYSE: EL): Moderate Buy with a $0.25 recent quarter EPS
- Herbalife (NYSE: HLF): Strong Buy with a $0.88 recent quarter EPS
Avon Products is in the cosmetics industry, which has experienced price/earnings growth of 1.1%.
Finally, a description of the company's main areas of operation: Avon Products is a global manufacturer and marketer of beauty, fashion, and home products.
Take Action:
Now that you have reviewed all the numbers, be ready to move if the upcoming Avon Products earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.
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