According to Zacks, “Shares of Avon have outperformed the industry in the past three months. It is gaining momentum from ‘Open Up Avon’ strategy that focuses on reviving the direct selling business, renovating brands and enhancing e-commerce capabilities. The company generated $40 million of cost savings in 2018, from this strategy. Avon also remains committed to attaining its long-term financial targets for 2021. However, the company has been witnessing softness across its Representatives for the past few quarters now. This has been hurting performance as evident from the dismal surprise history. It delivered negative earnings surprise in 11 of the last 14 quarters, with sales miss in seven of the past 10 quarters. In fourth-quarter 2018, Avon’s top and bottom lines missed estimates and declined year over year. Moreover, the company witnessed sharp decline in margins owing to higher cost of investments to boost Representatives growth.”
A number of other equities research analysts also recently issued reports on AVP. TheStreet downgraded shares of Avon Products from a “c” rating to a “d” rating in a research note on Friday, February 15th. ValuEngine downgraded shares of Avon Products from a “buy” rating to a “hold” rating in a research note on Wednesday, January 2nd. Two analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. Avon Products presently has an average rating of “Buy” and a consensus target price of $2.75.
Avon Products (NYSE:AVP) last released its quarterly earnings results on Thursday, February 14th. The company reported $0.07 earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of $0.07. The company had revenue of $1.40 billion for the quarter, compared to the consensus estimate of $1.43 billion. Avon Products had a negative net margin of 0.36% and a negative return on equity of 4.12%. Avon Products’s revenue was down 10.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.12 earnings per share. As a group, sell-side analysts anticipate that Avon Products will post 0.08 EPS for the current year.
Several institutional investors and hedge funds have recently made changes to their positions in the company. BlackRock Inc. raised its stake in shares of Avon Products by 1.5% in the fourth quarter. BlackRock Inc. now owns 43,634,355 shares of the company’s stock valued at $66,323,000 after acquiring an additional 630,649 shares during the period. Yacktman Asset Management LP raised its stake in shares of Avon Products by 1.3% in the fourth quarter. Yacktman Asset Management LP now owns 19,097,886 shares of the company’s stock valued at $29,029,000 after acquiring an additional 241,002 shares during the period. Renaissance Technologies LLC raised its stake in shares of Avon Products by 9.5% in the third quarter. Renaissance Technologies LLC now owns 14,240,876 shares of the company’s stock valued at $31,330,000 after acquiring an additional 1,235,776 shares during the period. Vanguard Group Inc raised its stake in shares of Avon Products by 38.2% in the third quarter. Vanguard Group Inc now owns 13,540,024 shares of the company’s stock valued at $29,788,000 after acquiring an additional 3,740,181 shares during the period. Finally, Vanguard Group Inc. raised its stake in shares of Avon Products by 38.2% in the third quarter. Vanguard Group Inc. now owns 13,540,024 shares of the company’s stock valued at $29,788,000 after acquiring an additional 3,740,181 shares during the period. 74.97% of the stock is currently owned by institutional investors and hedge funds.
About Avon Products
Avon Products, Inc manufactures and markets beauty and related products in Europe, the Middle East, Africa, south Latin America, north Latin America, and the Asia Pacific. The company offers beauty products, including skincare, fragrance, and color cosmetics; and fashion and home products, such as fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children's products, and nutritional products.
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