Avon Products Inc.
) is set to declare second-quarter 2013 results on Aug 1. In the
last quarter, the company's posted a positive earnings surprise
of 85.7%. Let us now look at how things have developed for the
Growth Factors in the Past Quarter
The year-over-year improved bottom-line results for first-quarter
2013 primarily benefited from improving margins. Management's
turnaround strategies aimed at accelerating top-line growth,
reducing costs, and improving working capital, paid off, as was
evident from improved operating results in the last quarter.
Our proven model does not conclusively project Avon Products as
beating earnings estimates this quarter. A stock needs to have
both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, 2 or 3 to surpass earnings estimates.
However, that is not the case here due to the following factors:
ESP for Avon Products is 0.00% since the Most Accurate Estimate
stands at 26 cents, which is in line with the Zacks Consensus
Zacks #3 Rank (Hold):
Avon Products' Zacks Rank #3 increases the forecasting power of
ESP. However, we also need to have a positive ESP to be confident
of an earnings surprise call. We caution against stocks with
Zacks Rank #4 and 5 (Sell rated stocks) going into earnings
announcement, especially when the company is undergoing negative
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
The Gap, Inc.
), Earnings ESP of +1.70% and a Zacks Rank #1 (Strong Buy).
New York & Company Inc.
), Earnings ESP of +33.33% and a Zacks Rank #2 (Buy).
Abercrombie & Fitch Co.
), Earnings ESP of +3.23% and a Zacks Rank #3 (Hold).
ABERCROMBIE (ANF): Free Stock Analysis Report
AVON PRODS INC (AVP): Free Stock Analysis
GAP INC (GPS): Free Stock Analysis Report
NEW YORK & CO (NWY): Free Stock Analysis
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