Avon Products Inc.

Avon Products Inc. (AVP - Analyst Report) continues to see a higher Zacks Consensus Estimates. For the current full year, the earnings forecast stands at $1.72 per share, up from $1.66 over the past 90 days. For 2010, the projection of $2.20 rose from the 3 months-ago level of $2.10.

Company Description

Avon Products is beauty company with over $10 billion in annual revenue. As the world's largest direct seller, Avon markets to women in more than 100 countries through 5.8 million independent Avon Sales Representatives. Avon's product line includes beauty products as well as fashion and home products. The company features such well-recognized brand names as Avon Color, Anew, Skin-So-Soft, Advance Techniques, Avon Naturals and Mark.

Bullish Forecasts

The company continues to see a higher Zacks Consensus Estimates. For the current full year, the earnings forecast stands at $1.72 per share, up from $1.66 over the past 90 days. For 2010, the projection of $2.20 rose from the 3 months-ago level of $2.10.

Solid Earnings

In late October, the company reported third-quarter earnings of 42 cents per share, exceeding the Zacks Consensus Estimate by 8%. Revenue slipped 4% year-over-year but was up 7% on a local-currency basis.

Favorable Industry Comparisons

Avon boasts a return on equity (ROE) of 87%, dwarfing the industry average of 8%. The company’s net profit margin of 6% compares to an industry average of 4%. Avon pays an industry-leading dividend yield of 2.6%.

Alex Kolb is the Growth & Income Stock Strategist for Zacks.com. He also writes the popular daily commentary column for the ZacksElite.com service.

Read the full analyst report on AVP