Leading manufacturer and marketer of beauty and related products, Avon Products, Inc. (AVP - Free Report) reported second-quarter 2017 results. The company posted adjusted loss from continuing operations of 3 cents per share, against earnings of 7 cents delivered in the year-ago quarter and also compared unfavorably with the Zacks Consensus Earnings Estimate of 5 cents.
Earnings Estimate Revision: The Zacks Consensus Estimate for 2017 has trended slightly downward in the last 30 days. However, if we look at Avon’s performance in the trailing four quarters (excluding the quarter under review), the company has outperformed the Zacks Consensus Estimate by an average of 3.7%.
Revenues: Avon Products’ total revenue of $1,353.5 million declined 3% year over year and also came below the Zacks Consensus Estimate of $1,443 million. On a constant dollar basis, sales declined 4%.
For 2017, management continues to anticipate revenues to grow in low single-digits, on a constant dollar basis.
Key Events: The company is on track with its Transformation Plan that was announced in Jan 2016. The plan mainly includes investing in growth, enhancing cost structure and improving financial flexibility. In this regard, management plans to raise its capital expenditures by nearly $65 million, in 2017.
Zacks Rank: Currently, Avon Products carries a Zacks Rank #3 (Hold), which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stock Movement: Following the dismal second-quarter 2017 results, shares of Avon Products declined 10.7% during the pre-market trading hours.
Check back later for our full write up on Avon Products’ earnings report!
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