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S&P 500 (NYSE:SPY) component Avon Products (NYSE:AVP) will unveil its latest earnings on Tuesday, October 30, 2012. Avon Products is a global manufacturer and marketer of beauty, fashion, and home products.
Avon Products Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for net income of 23 cents per share, a decline of 39.5% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 26 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 23 cents during the last month. Analysts are projecting profit to rise by 49.4% versus last year to 83 cents.
Past Earnings Performance: The company enters this earnings report having missed estimates the last four quarters. Last quarter, the company fell short of expectations by one cent, reporting profit of of 20 cents per share against a mean estimate of net income of 21 cents per share.
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A Look Back: In the second quarter, profit fell 70.1% to $61.6 million (14 cents a share) from $206.2 million (47 cents a share) the year earlier, missing analyst expectations. Revenue fell 9.3% to $2.59 billion from $2.86 billion.
Stock Price Performance: Between October 18, 2012 and October 24, 2012, the stock price dropped $1.47 (-8.6%), from $17.16 to $15.69. It saw one of its worst periods between November 11, 2011 and November 25, 2011 when shares fell for 10 straight days, dropping 11.7% (-$2.14) over that span. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 9, 2012, when shares rose for six straight days, increasing 13.8% (+$1.99) over that span.
Wall St. Revenue Expectations: Analysts are projecting a decline of 6.5% in revenue from the year-earlier quarter to $2.58 billion.
On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 2% in the first quarter and dropped again in the second quarter.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.45 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.
Analyst Ratings: There are mostly holds on the stock with 11 of 14 analysts surveyed giving that rating.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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