Avon Reports Slightly Higher Q4 Net, Beats Street, Trading Higher in Pre-Market

Avon's Q4 net income of $184.1 million, or $0.41/share, was mostly flat compared to its last Q4 profit of $183.2m ($0.40/share), but beat analysts' average estimate of $0.38/share, and was its first profit increase in six quarters. Revenue growth of 9% to $2.62b also beat analysts' estimate of $2.5b. CEO Andrea Jung said restructuring saved Avon $100m in '06 and expects annual savings of $300m by 2009. Avon's shares lost 1.6% to $34.62 in normal trading yesterday, but are trading around $36 in pre-market activity on volume of about 15k shares.

Sources: Press release, Bloomberg, Forbes-AP
Commentary: Avon: A LBO May Not Be Knocking at Its Door • LBO Fever -- Barron's Looks at Who May Be Next • Avon Earnings Conference Call Transcript (later today)
Stocks/ETFs to watch: Avon (AVP). Competitors: Estee Lauder (EL), Inter Parfums (IPAR), L'OREAL (LRLCY.PK), Procter & Gamble (PG), Revlon (REV)

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