Avon Q4 Adjusted Operating Income Tops Estimates (AVP)

Avon Q4 Adjusted Operating Income Tops Estimates (AVP)


Beauty products manufacturer and distributor Avon Products, Inc. (AVP) shares were up early on Tuesday as the company reported a better-than-expected fourth-quarter earnings report; adjusted net income easily topped Wall Street estimates.

The New York-based company reported a loss of $162.2 million, or 37 cents per share, versus a loss of $400,000, or nothing per share, in the year ago period. Adjusting for items such as the write-down for its Silpada business, the company had an operating profit of 37 cents per share.

Revenue for the quarter fell 1% to $2.96 billion from $3 billion a year earlier.

According to analysts polled by Thomson Reuters, the company was expected to earn an adjusted 27 cents per share on revenue of $3 billion.

Avon has be plagued by a dwindling North American market; this continued in the fourth-quarter as revenue in the home market fell 12%. However, the company did show signs of life in the Brazilian and Russian markets, with revenue up 10% and 3%, respectively.

Avon shares were up 67 cents, or +3.88%, during pre-market trading on Tuesday. The stock is down -3.3% over the past year.

The Bottom Line
Shares of Avon Products (AVP) have a dividend yield of 1.39% based on last night’s closing price of $17.28 and the company’s annualized dividend payout of 24 cents per share.

Avon Products, Inc. (AVP) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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