Avon’s Q2 Profit and Revenue Miss the Mark as Margins Plunge; Shares Fall (AVP)

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Beauty products maker Avon Products, Inc. ( AVP ) on Wednesday posted second quarter earnings that fell 70% from last year, hurt by lower margins and revenue.

The New York-based company reported second quarter net income of $61.6 million, or 14 cents per share, compared with $206.2 million, or 47 cents per share, in the year-ago period. Excluding special items, adjusted profit was 20 cents per share.

Revenue fell 9.3% from last year to $2.59 billion.

On average, Wall Street analysts expected a higher profit of 21 cents per share, on larger revenue of $2.67 billion.

On another sour note, operating margin plunged to 4.9% from last year's 11.1%.

Avon shares fell 49 cents, or -3.2%, in premarket trading Wednesday.

The Bottom Line
Shares of Avon Products ( AVP ) have a 5.94% dividend yield, based on last night's closing stock price of $15.49. The stock has technical support in the $12-$14 price area. If the shares can firm up, we see overhead resistance around the $16-$18 price levels.

Avon Products, Inc. ( AVP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.9 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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