Avon Slashes Dividend by 74% as Q3 results Plunge, Missing View (AVP)
Beauty products maker Avon Products, Inc. ( AVP ) on Thursday posted disappointing third quarter earnings results and cut its quarterly dividend payout by 74% in an effort to conserve costs.
The New York-based company reported third quarter net income of $31.6 million, or 7 cents per share, compared with $164.2 million, or 38 cents per share, in the year-ago period. Excluding special items, adjusted profit was 17 cents per share.
Revenue fell 7% from last year to $2.51 billion.
On average, Wall Street analysts expected a much higher profit of 22 cents per share, on larger revenue of $2.58 billion.
In a separate announcement, AVP slashed its quarterly dividend payout by nearly 74% as part of a larger cost-cutting plan. The new dividend of just 6 cents per share (down from 23 cents) will be paid on Dec. 3 with an expected ex-dividend date of Nov. 13.
Avon shares fell 44 cents, or -2.9%, in premarket trading Thursday.
Avon Products, Inc. ( AVP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.8 out of 5 stars.