Avon Products Inc.
), the global beauty company, is slated to report its fourth
quarter and fiscal 2013 results on Feb 13, 2014. In the last
quarter, it posted a negative earnings surprise of 26.3%. Let's
see how things are shaping up for this announcement.
AVON PRODS INC (AVP): Free Stock Analysis
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Factors this Past Quarter
Avon Products' third-quarter 2013 earnings missed estimates and
slumped year over year mainly on the back of the ongoing
macroeconomic woes and weak performance at some of the company's
segments, primarily North America. Top-line growth was impacted
by weak performances in almost all regions including Latin
America, North America and Asia-Pacific, whereas the top line
remained flat in Europe, the Middle East and Africa. Moreover,
the company continues to face challenges with regard to growth of
active representatives, units sold and its Beauty Products and 7%
decline Fashion & Home revenues.
Our proven model does not conclusively show that Avon Products is
likely to beat earnings estimates this quarter. This is because a
stock needs to have both a positive
and a Zacks Rank #1, #2 or #3 for this to happen. This is not the
case here, as you will see below.
Negative Zacks ESP:
ESP (Expected Surprise Prediction) for Avon Products is -3.45%.
This is because the Most Accurate estimate stands at 28 cents,
while the Zacks Consensus Estimate is pegged at 29 cents.
Zacks Rank #4 (Sell):
Avon Products' Zacks Rank #4 when combined with a negative ESP
makes surprise prediction difficult. We caution against stocks
with a Zacks Ranks #4 and #5 (Sell rated stocks) going into the
earnings announcement, especially when the company is seeing
negative estimate revisions momentum.
Stocks that Warrant a Look
Here are some other companies you may want to consider as our
model shows they have the right combination of elements:
Foot Locker Inc.
) has an Earnings ESP of +1.33% and a Zacks Rank #2 (Buy).
Finish Line Inc.
) has an Earnings ESP of +1.18% and a Zacks Rank #2 (Buy).
The Home Depot Inc.
) has an Earnings ESP of +1.36% and a Zacks Rank #3 (Hold).