Avon Products, Inc. Misses Earnings Estimates

Shares of Avon Products edged upward by as much as 1.05% to $8.67 per share after today’s earnings report

Avon Products released its latest earnings report before opening bell this morning, posting adjusted earnings of 20 cents per share or $89 million on revenue of $2.34 billion, a 12% decline but 5% increase in constant currency. Analysts had been expecting earnings of 25 cents per share on $2.35 billion in revenue.

Key metrics from Avon’s earnings report

In the same quarter a year ago, Avon’s adjusted net income from continuing operations was 34 cents per share or $151 million. Net losses were 75 cents per share or $330.7 million, compared to net losses of 16 cents per share or $68 million in the same quarter a year ago.

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Avon took a hit of 95 cents per share from several items, including a charge related to lower projected foreign income, which reduced its earnings. The strengthening of the U.S. dollar had a negative impact of 22 cents per share on the company’s earnings.

Total units fell 3%, although price per mix increased 8%. The number of active Avon representatives fell 4% while the average order size improved by 9%. Revenue from Brazil fell 7%, while Mexico revenue rose 1%. Revenue from Venezuela declined 80%. In Europe, the Middle East and Africa, revenue declined 11%. Revenue from North America fell 12% in the fourth quarter.

Avon’s full year results

For the full year, Avon posted revenue of $8.9 billion, an 11% decline or flat in constant dollars. Net losses were 88 cents per share, compared to 2013’s net loss of 1 cent per share. Adjusted net earnings were 75 cents per share, compared to 2013’s $1.02 per share.

Total units fell 5%, while price per mix improved 5%. The number of active representatives fell 5%, although average order size rose by 5%.

Avon guides for 2015

For this year, Avon expects currency changes to negatively impact its revenue by 12 percentage points. The beauty products company expects to see a modest increase in constant dollar revenue.