Markets

Avon Products (AVP) Q4 Earnings & Revenue Miss Estimates

Leading manufacturer and marketer of beauty and related products, Avon Products Inc.AVP reported fourth-quarter 2016 results. The company's adjusted earnings of 1 cent per share came much below the Zacks Consensus Earnings Estimate of 9 cents, but increased marginally from breakeven results recorded in the same year-ago period.

Earnings Estimate Revision: The Zacks Consensus Estimate for 2016 has been unchanged in the last 30 days, while for 2017 the same has trended upwards. However, if we look at Avon's performance in the trailing four quarters (including the quarter under review), the company has underperformed the Zacks Consensus Estimate by an average of 112.5%.

Avon Products, Inc. Price and EPS Surprise

Avon Products, Inc. Price and EPS Surprise | Avon Products, Inc. Quote

Revenues: Avon Products' total revenue of $1,568.1 million dropped 2% year over year and also came below the Zacks Consensus Estimate of $1,602 million. On a constant dollar basis, sales remained flat.

Key Events: The company is on track with its Transformation Plan that was announced in Jan 2016. The plan mainly includes investing in growth, enhancing cost structure and improving financial flexibility.

In this regard, management plans to invest nearly $350 million over a three year period starting 2016, toward media; social selling; IT and more. This, in turn is aimed at boosting the overall Representative experience. Further, Avon remains on track to generate its targeted savings of $350 million over a three year period. Evidently, in 2016, the company went ahead of schedule and realized roughly $120 million as estimated savings. Finally, as part of improving financial resilience, management reduced debt by about $260 million this year, which also surpassed its targeted reduction of $250 million.

Zacks Rank: Currently, Avon Products carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Check back later for our full write up on Avon Products' earnings report!

Just Released - Driverless Cars: Your Roadmap to Mega-Profits Today

In this latest Special Report, Zacks' Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making - autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>"

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Avon Products, Inc. (AVP): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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


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

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More