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.
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