Avon Products Misses on Both Revenue and Earnings
Avon Products (NYS: AVP) reported earnings on Feb. 14. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Avon Products missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted to zero.
Margins contracted across the board.
Avon Products notched revenue of $3.04 billion. The 12 analysts polled by S&P Capital IQ predicted net sales of $3.11 billion on the same basis. GAAP reported sales were 4.2% lower than the prior-year quarter's $3.18 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.39. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.51 per share on the same basis. GAAP EPS shrank to zero from the prior-year quarter's $0.52.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 61.1%, 80 basis points worse than the prior-year quarter. Operating margin was 9.1%, 400 basis points worse than the prior-year quarter. Net margin was 0.0%, 720 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.58 billion. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $11.24 billion. The average EPS estimate is $1.72.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 373 members out of 425 rating the stock outperform, and 52 members rating it underperform. Among 127 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 115 give Avon Products a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Avon Products is outperform, with an average price target of $22.64.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.