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Avon Products, in the Spotlight Soon

By Seth Jayson – Updated Apr 7, 2017 at 12:09PM

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Checking expectations

Avon Products (NYSE: AVP) is expected to report Q3 earnings on Oct. 30. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Avon Products's revenues will wane -6.1% and EPS will wane -42.1%.

The average estimate for revenue is $2.59 billion. On the bottom line, the average EPS estimate is $0.22.

Revenue details
Last quarter, Avon Products tallied revenue of $2.59 billion. GAAP reported sales were 9.3% lower than the prior-year quarter's $2.86 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.20. GAAP EPS of $0.14 for Q2 were 70% lower than the prior-year quarter's $0.47 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 62.8%, 170 basis points worse than the prior-year quarter. Operating margin was 6.4%, 510 basis points worse than the prior-year quarter. Net margin was 2.4%, 480 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $10.78 billion. The average EPS estimate is $0.81.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 373 members out of 431 rating the stock outperform, and 58 members rating it underperform. Among 113 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 96 give Avon Products a green thumbs-up, and 17 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Avon Products is hold, with an average price target of $19.52.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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