The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Avon Products missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Avon Products logged revenue of $2.55 billion. The 13 analysts polled by S&P Capital IQ expected revenue of $2.60 billion on the same basis. GAAP reported sales were 7.7% lower than the prior-year quarter's $2.76 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.17. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.22 per share. GAAP EPS of $0.07 for Q3 were 82% lower than the prior-year quarter's $0.38 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 61.2%, 280 basis points worse than the prior-year quarter. Operating margin was 5.9%, 440 basis points worse than the prior-year quarter. Net margin was 1.2%, 470 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.01 billion. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $10.78 billion. The average EPS estimate is $0.81.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 372 members out of 430 rating the stock outperform, and 58 members rating it underperform. Among 110 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 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 $17.92.
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