Zacks downgraded AVP to "underperform" from "neutral".
Moody dropped Avon's debt outlook from stable to negative, citing weaking credit metrics.
Credit ratings agency S&P placed AVP on CreditWatch with negative implications. This means that Avon's A- rating could be downgraded. S&P made the move after Avon announced poor fourth quarter earnings.
Caris & Company downgraded Avon from "Average" to "Below Average".
Avon announced that its Q4 2010 earnings were $229.5 million, or 53 cents per share, down 15% from $269.4 million, or 62 cents per share a year earlier. The company sited problems in Russia, Brazil, and China as well as increased costs for resisns, chemicals, freight, and labor. Total revenue increased 1.3%, however, sales in China fell by 45%.
Avon announced that it was increased its quarterly dividend by 4.5% to 23 cents per share. The company's annual payout increased from 88 cents to 92 cents per share.
UBS downgraded AVP from "Buy" to "Neutral"
Today, Avon announced the launch of Avon Voices, a global online singing talent search and songwriting competition, in honor of the company's 125th anniversary. The goal of the competition is to find two talented singers, one of whom is an Avon representative, who could produce an album. The contest is being judged by big names like Fergie, Diane Warren, and Natasha Bedingfield among others.
Avon announced that it was selling its Japan operations to TPG Capital for about $90 million dollars. The company hopes to refocus on higher growth markets. Barclays downgraded the comopany from "Overweight" to "Equal Weight".
Caris & Company downgraded AVP from Buy to Average.
AVP announced that its Q3 2010 earnings were $168 million, or 38 cents per share, an increase of 7% compared to $156 million, or 36 cents per share year-on-year. Analysts were expecting 47 cents. Revenue increased 4% due to strong sales in Latin America and the Middle East/Africa. However, the company reported a 30% and 2% decline in sales in China and the US respectively. Advertising costs increased 36%.
On October 12, 2010, reports rose about a possible takeover of Avon Products by competitor L'Oreal. The projected bidding price is at $44 per share.
AVP was downgraded by Morgan Stanley from Overweight to Equal-weight. The downgrade comes from near-term earnings risks.
Avon announced that its Q2 2010 earnings were $167.6 million, or 39 cents per share, more than double last year's net income of $82.9 million, or 19 cents per share. Revenues grew 8% on higher sales in Latin America. Sales in all of the company's product categories increased.
TheStreet upgraded AVP from "hold" to "buy" on higher Q2 2010 earnings results.
Avon announced that it was buying jewelry retailer Silpada for $650 million in an effort to expand its jewelry business. Silpada is a direct seller of sterling silver jewelry in the U.S., Canada and the U.K. Silpada makes more expensive jewelry than Avon, with prices ranging from $12 to $279, with an average of $64. Avon said Silpada will continue to operate as a standalone business with its existing 32,000 independent sales representative.
Avon announced that its Q1 2010 earnings were $43 million, down 64% from the previous year's quarter. The large decline was due to currency devaluation in Venezuela, which caused the comany to incurr a 66.1% tax rate. Sales for the quarter increased by 14% and the number of active sales representatives increased by 6%.
Avon confirmed the administrative leaves of absence for four employees pending the outcome of an internal ethics investigation regarding its business in China. The voluntary internal investigation was started in June 2008.
AVP reported that its Q4 2009 earnings were $269.4 million or 62 cents per share, up 16% from $232 million or 54 cents per share in Q4 2008. The gain ni net income was attributed to a 13% gain in total revenues. However, analysts were expecting an earnings increase of 67 cents/share.
Caris & Company upgraded BBBY from above average to buy.
AVP announced that its Q3 2009 earnings were $156 milllion or 36 cents per share. This down 30% from the prior year quarter where earnings were $222 million or 52 cents per share. Despite having 10% more people sell its products, the company's net revenue fell 4% due to the strong dollar.
AVP announced that its second quarter earnings fell 65% due to a strong dollar and hefty restructuring charges, both an addition to the slowing demand for beauty products due to the recession. Avon recorded a profit of 38 cents per share, which beat analysts' prediction for income of 34 cents per share.
The company blames foreign exchange pressures and the impact of the global recession causing consumers to go for cheaper products.
AVP's reported net earnings of $232 million ($.54 EPS) in Q4 2008, up 80% year on year from the Q4 2007. For the full FY2008, AVP's net earnings were up 69% to $875 million ($2.04 EPS). Both net earnings increases may be attributed to the cost cutting and restructuring initiatives AVP has been implementing in the past year.
In Q3 of 2008, AVP's total revenue grew 13% to $2.6 billion compared to Q3 of 2007; notably, sales of beauty products increased by 15%. Net income in Q3 2008 was $223 million, compared to $139 million in the prior-year quarter. Growth of beauty product sales overall may be attributed to the 11% year-over-year increase in advertising spending, which totaled $106 million, to support the launch of new beauty product lines.
Avon reported net income of $235.6 million, or 55 cents per share, more than double the $112.7 million, or 26 cents per share, it reported a year ago. Analysts were expecting 47 cents per share. The company's results were driven by growth in Eastern Europe and Latin America.
As part of restructuring plans avon plans to cut more jobs by 2011 and expects savings of more than 700 million.
Avon reported a 25% in Quarterly Profits due to restructuring initiatives costs.
Net income rose and revenue increased by 9% in third quarter reports.