Jack Adamo, writer for Forbes.com has a positive outlook for Avon, as shared in an articles today:
There are few stocks that the market thinks is uglier right now than Avon Products . But this unloved company could turn into a beautiful swan in the next couple of years, and its transformation could start showing up much sooner.
Avon’s third quarter earnings report was very encouraging in some aspects, but left a lot of questions unanswered. While revenues were down 8%, that was entirely due to the change in exchange rates caused by the very strong U.S. dollar. The company has a large South American presence. While that’s still not good news, it is at least not indicative of operational or marketing problems, though perhaps a new CFO would hedge currencies better. The search for one is currently in progress.
Elsewhere on the income statement, operating margins improved dramatically from 2.9% last year to 8.8% this year, although there’s still plenty of room for improvement there. Another positive is that third-quarter net income from continuing operations was $0.21 per diluted share, compared with a net loss of $0.01 last year.
Analysts expect operating or adjusted earnings for full-year 2014 to come in at $0.83 and look