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Cosmetic Stocks to Post Q3 Earnings on Nov 3: CHD, AVP, NUS
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After encountering the rough tides arising from the sluggishness witnessed in emerging markets such as China and Brazil, and the fears of challenging economic/political conditions in Europe post Brexit, the U.S. economy looks steadier now. This is quite evident from the ongoing earnings season. The Q3 earnings season has been increasingly heading toward an improvement after five straight quarters of earnings decline.
Per the latest Earnings Outlook report as of Nov 1, out of the 332 S&P 500 companies that have come up with their quarterly numbers, approximately 72.9% have posted positive earnings surprises, while 55.4% beat top-line expectations. According to the report, earnings for the 332 S&P 500 companies that have reported so far are up 1.9% from the same period last year, while revenues have increased 1.3%.
Further, the report projects that earnings for the total S&P 500 companies will improve 2.1% from the year-ago period with total revenue inching up 1.4%. However, the performance of the index is not restricted to a single sector, and of the 16 Zacks sectors, four have witnessed an earnings decline so far in the third quarter – Autos, Conglomerates, Oil/Energy and Transportation. Nonetheless, the Consumer Staples sector is displaying some strength.
About 62.5% of the total number of S&P 500 companies in this sector has reported their results, wherein 85% beat earnings estimates, while 40% surpassed revenue estimates. While earnings surged 4.9% year over year, revenues inched up 0.5%. Cosmetic comes under the Consumer Staples sector. Among Cosmetic stocks lined up to report their quarterly numbers on Nov 3, let’s take a sneak peek at three companies.
Church & Dwight Co. Inc. (CHD - Free Report) , manufacturer and marketer of household, personal care and specialty products, is slated to report third-quarter 2016 results. Our proven model does not conclusively show that Church & Dwight is likely to beat earnings estimates this quarter. This is because a stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Church & Dwight has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at 47 cents. The company carries a Zacks Rank #3, which increases the predictive power of ESP. However, its ESP of 0.00% makes surprise prediction difficult.
We expect beauty and cosmetic goods company, Avon Products Inc. to beat expectations when it reports third-quarter 2016 results, as it holds a favorable combination. The Most Accurate estimate is 4 cents, while the Zacks Consensus Estimate is pegged lower at 3 cents. So the ensuing +33.33% Earnings ESP and the company’s Zacks Rank #1 make us reasonably confident of an earnings beat.
Avon’s efforts towards improving pricing, lowering costs, building brand strength and boosting Active Representatives have started to pay off. This was evident in the second quarter, where the company made a significant recovery, gaining from improved performances in nine of its top 10 markets in local currency. Further, Avon is constantly focused on the implementation of its Transformation Plan that was announced in Jan 2016, to curtail costs. All these factors emphasize that the company is in a position to return to sustainable and profitable growth in the future, thus making us positive about the upcoming results. (Read: Avon Q3 Earnings: Stock to Deliver a Beat Again?)
Nu Skin Enterprises Inc. (NUS - Free Report) is set to report third-quarter 2016 results. Unfavorable currency has been a concern for Nu Skin’s revenue since quite some time. For the third quarter, revenue is expected in a range of $560−$580 million, assuming a negative foreign currency impact of approximately 1−2%. Earnings are expected in the range of 80–84 cents per share in the quarter. (Read: Nu Skin to Report Q3 Earnings: What's in the Cards?)
The company employs representatives to sell products and is always closely watched by rivals and regulators. It faces accusations like focusing more on recruiting rather than product sales and running a pyramid business model, i.e. employing deceptive marketing practices for business improvement. We note that China has always been suspicious about direct selling companies like Nu Skin. Nevertheless, we believe that product innovation has been driving the company’s revenues since several past quarters. In the second quarter, revenues were driven by significant product launch events in South Asia/Pacific and Greater China.
Our criteria of earnings beat has been let down by an Earnings ESP of -1.22%, as the Most Accurate estimate stands at 81 cents, while the Zacks Consensus Estimate is pegged higher at 82 cents. Nu Skin currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Cosmetic Stocks to Post Q3 Earnings on Nov 3: CHD, AVP, NUS
After encountering the rough tides arising from the sluggishness witnessed in emerging markets such as China and Brazil, and the fears of challenging economic/political conditions in Europe post Brexit, the U.S. economy looks steadier now. This is quite evident from the ongoing earnings season. The Q3 earnings season has been increasingly heading toward an improvement after five straight quarters of earnings decline.
Per the latest Earnings Outlook report as of Nov 1, out of the 332 S&P 500 companies that have come up with their quarterly numbers, approximately 72.9% have posted positive earnings surprises, while 55.4% beat top-line expectations. According to the report, earnings for the 332 S&P 500 companies that have reported so far are up 1.9% from the same period last year, while revenues have increased 1.3%.
Further, the report projects that earnings for the total S&P 500 companies will improve 2.1% from the year-ago period with total revenue inching up 1.4%. However, the performance of the index is not restricted to a single sector, and of the 16 Zacks sectors, four have witnessed an earnings decline so far in the third quarter – Autos, Conglomerates, Oil/Energy and Transportation. Nonetheless, the Consumer Staples sector is displaying some strength.
About 62.5% of the total number of S&P 500 companies in this sector has reported their results, wherein 85% beat earnings estimates, while 40% surpassed revenue estimates. While earnings surged 4.9% year over year, revenues inched up 0.5%. Cosmetic comes under the Consumer Staples sector. Among Cosmetic stocks lined up to report their quarterly numbers on Nov 3, let’s take a sneak peek at three companies.
Church & Dwight Co. Inc. (CHD - Free Report) , manufacturer and marketer of household, personal care and specialty products, is slated to report third-quarter 2016 results. Our proven model does not conclusively show that Church & Dwight is likely to beat earnings estimates this quarter. This is because a stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Church & Dwight has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at 47 cents. The company carries a Zacks Rank #3, which increases the predictive power of ESP. However, its ESP of 0.00% makes surprise prediction difficult.
CHURCH & DWIGHT Price and EPS Surprise
CHURCH & DWIGHT Price and EPS Surprise | CHURCH & DWIGHT Quote
We expect beauty and cosmetic goods company, Avon Products Inc. to beat expectations when it reports third-quarter 2016 results, as it holds a favorable combination. The Most Accurate estimate is 4 cents, while the Zacks Consensus Estimate is pegged lower at 3 cents. So the ensuing +33.33% Earnings ESP and the company’s Zacks Rank #1 make us reasonably confident of an earnings beat.
Avon’s efforts towards improving pricing, lowering costs, building brand strength and boosting Active Representatives have started to pay off. This was evident in the second quarter, where the company made a significant recovery, gaining from improved performances in nine of its top 10 markets in local currency. Further, Avon is constantly focused on the implementation of its Transformation Plan that was announced in Jan 2016, to curtail costs. All these factors emphasize that the company is in a position to return to sustainable and profitable growth in the future, thus making us positive about the upcoming results. (Read: Avon Q3 Earnings: Stock to Deliver a Beat Again?)
AVON PRODS INC Price and EPS Surprise
AVON PRODS INC Price and EPS Surprise | AVON PRODS INC Quote
Nu Skin Enterprises Inc. (NUS - Free Report) is set to report third-quarter 2016 results. Unfavorable currency has been a concern for Nu Skin’s revenue since quite some time. For the third quarter, revenue is expected in a range of $560−$580 million, assuming a negative foreign currency impact of approximately 1−2%. Earnings are expected in the range of 80–84 cents per share in the quarter. (Read: Nu Skin to Report Q3 Earnings: What's in the Cards?)
The company employs representatives to sell products and is always closely watched by rivals and regulators. It faces accusations like focusing more on recruiting rather than product sales and running a pyramid business model, i.e. employing deceptive marketing practices for business improvement. We note that China has always been suspicious about direct selling companies like Nu Skin. Nevertheless, we believe that product innovation has been driving the company’s revenues since several past quarters. In the second quarter, revenues were driven by significant product launch events in South Asia/Pacific and Greater China.
Our criteria of earnings beat has been let down by an Earnings ESP of -1.22%, as the Most Accurate estimate stands at 81 cents, while the Zacks Consensus Estimate is pegged higher at 82 cents. Nu Skin currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
NU SKIN ENTERP Price and EPS Surprise
NU SKIN ENTERP Price and EPS Surprise | NU SKIN ENTERP Quote
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>