AVP - Avon Products, Inc - One analyst upped his estimate over the past 30 days

Avon Products, Inc. (AVP), currently in the midst of a turnaround plan, continues to buy back shares and pay dividends. In fact, on Feb 1, the Board of Directors declared a 5.7% increase in its regular quarterly dividend to 18.5 cents per common share. AVP has a current dividend yield of 1.9% and a five-year average dividend yield of 1.7%. Full Analysis Avon Products, Inc. is a global manufacturer and marketer of beauty and related products. The company’s products fall into three product categories: Beauty, which consists of cosmetics, fragrances, skin care and toiletries; Beauty Plus, which consists of fashion jewelry, watches, apparel and accessories, and Beyond Beauty, which consists of home products and gift and decorative products. On Feb 6, AVP posted fourth-quarter profits $184.1 million, or 41 cents per share. The result topped the consensus earnings estimate by two cents. AVP has now beaten analysts’ earnings expectations in 13 out of the past 16 quarters. Revenues jumped 9.2% to $2.62 billion from nearly $2.4 billion in the prior-year period. The company is scheduled to release its first-quarter results on May 1. Chairman and CEO Andrea Jung stated, "With 9% revenue growth in the fourth quarter, we continue to feel good about the progress we are making against our turnaround plan. Boosted by this strong quarterly performance, full-year revenue finished ahead of our expectations. The investments we are making in our business are clearly starting to deliver results." AVP's turnaround initiative to improve brand competitiveness included a 95% boost in fourth-quarter advertising to $89 million. The increase supported new product introductions as well as Avon China's direct-selling launch. The consensus earnings estimate for this quarter currently resides at 29 cents. One analyst upped his estimate over the past 30 days. Profit forecasts for next quarter sit at 39 cents and also reflect an upward revision by one analyst over the past month. Earnings per share are projected to grow 11.3% over the next 3-5 years. Although the company is in the midst of a turnaround program, it was able to produce $796 million in cash flow from operating activities. AVP repurchased $355 million of its own shares during the past year. Moreover, on Feb 1, the Board of Directors declared a 5.7% increase in its regular quarterly dividend to 18.5 cents per common share from 17.5 cents. AVP has a current dividend yield of 1.9% and a five-year average dividend yield of 1.7%. AVP’s return on equity dwarfs that of the industry average—67% compared to 19%. AVP is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home