The Dividend Daily

Beauty products maker Avon Products, Inc. (AVP) said Thursday that its third quarter profit plunged 30% from last year, hurt by higher costs and lower revenue.

The New York-based company posted third quarter net income of $156.2 million, or 36 cents per share, compared with $222.6 million, or 52 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 42 cents per share.

Revenue fell 3% from last year, to $2.55 billion, hurt partially by the stronger dollar.

On average, Wall Street analysts expected a lower profit of 40 cents per share, albeit on slightly higher sales of $2.57 billion.

Avon shares fell $1, or -3%, in premarket trading Thursday.

The Bottom Line
We had removed shares of AVP from our “recommended” list last Oct.2, when shares traded at $41.23. The company will now have a 2.55% dividend yield, based on last night’s closing stock price of $33.00. The stock has technical support in the $25 price area. If the shares can firm up, we see overhead resistance around the $35-$36 price range. We would remain on the sidelines for now.

Avon Products, Inc. (AVP) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

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