Earnings Preview: Avon Products

Avon Products (AVP) is expected to report Q2 earnings before market open Wednesday, July 30, with a conference call scheduled for 9:00 a.m. ET.

Guidance

Analysts are looking for a profit of 47c on revenue of $2.6B. The consensus is 44c to 52c for EPS, and revenue of $2.54B to $2.68B, according to First Call. Back in February, when Avon reported its FY07 results, it stated that it saw mid single digit revenue growth for FY08 and FY08 operating margins approaching the 2005 level.

Avon is currently in the middle of a restructuring program which includes job cuts, realignment of manufacturing and outsourcing to other countries. When the restructuring is complete in 2011 to 2012, the company expects to save $430M annually. In 2009, the savings are projected to be $300M.

Analyst Views

Note that on July 16, BMO Capital downgraded the Personal Care and Household Sector based on negative earnings revisions and impact from cost inflation.