Avon Products Inc
), the world's leading beauty company to beat expectations when
it reports first-quarter 2013 results on Apr 30.
Why a Likely Positive Surprise?
Our proven model shows that Avon Products may beat the
earnings because it has the right combination of two key
Positive Zacks ESP:
Avon Products currently has an Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) of +14.29%. This is because the Most Accurate Estimate stands
at 16 cents, while the Zacks Consensus Estimate is pegged at 14
Zacks #2 Rank (Buy):
Note that stocks with a Zacks Rank #1, #2 and #3 have a higher
chance of beating the earnings. The Sell rated stocks (#4 and 5)
should never be considered going into an earnings
The combination of Avon Products' Zacks Rank #2 (Buy) and
Earnings ESP of +14.29% makes us confident of a positive earnings
beat on Apr 30.
What is Driving the Better-than-Expected Earnings?
Of late, Avon has been encountering challenges on various
fronts including declining top and bottom lines and a
highly-leveraged balance sheet. In Nov 2012, Avon outlined some
strategic measures focused on accelerating the top-line growth,
trimming down costs and improving working capital. Management is
in the process of easing business issues and directing the
company toward the growth trajectory, while reviving its
competitive position among peers. We believe that the company's
strategies are paying off, which is evident from its
fourth-quarter 2012 operating results. After reporting dismal
results over the past 6 quarters, Avon posted
better-than-expected total revenue and earnings for the fourth
Other Stocks to Consider
Avon Products is not the only firm looking up this earnings
season. The following companies are also likely to beat earnings
estimates in the to-be-reported quarter:
Church & Dwight Co. Inc
) with Earnings ESP of +1.39% and a Zacks Rank #3 (Hold).
Dean Foods Company
) with Earnings ESP of +3.85% and a Zacks Rank #3 (Hold).
) Earnings ESP of +9.09% and a Zacks Rank #3 (Hold).
AVON PRODS INC (AVP): Free Stock Analysis
CHURCH & DWIGHT (CHD): Free Stock Analysis
DEAN FOODS CO (DF): Free Stock Analysis
ZUMIEZ INC (ZUMZ): Free Stock Analysis Report
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