The 10-second takeaway
For the quarter ended March 31 (Q1), Avon Products met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share increased significantly. GAAP earnings per share dropped to a loss.
Gross margins grew, operating margins expanded, net margins shrank.
Avon Products notched revenue of $2.48 billion. The 11 analysts polled by S&P Capital IQ expected a top line of $2.51 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.26. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. Non-GAAP EPS of $0.26 for Q1 were 160% higher than the prior-year quarter's $0.10 per share. GAAP EPS were -$0.03 for Q1 versus $0.06 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.1%, 120 basis points better than the prior-year quarter. Operating margin was 6.9%, 310 basis points better than the prior-year quarter. Net margin was -0.6%, 160 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.63 billion. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $10.78 billion. The average EPS estimate is $1.03.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 361 members out of 417 rating the stock outperform, and 56 members rating it underperform. Among 109 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 give Avon Products a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Avon Products is outperform, with an average price target of $21.61.
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