Avon estimates
This article was originally published in The Rose Sheet
Executive Summary
Third quarter earnings are expected to be up 13%, in line with analyst predictions, while income in the fourth quarter will fall below estimates, the company announced Sept. 29. Avon is expected to rebound for the year, with earnings up double-digits, representing "very solid growth" over the company's 17% income increase in 1998, the company said. In the U.S., "trends in beauty sales in the fourth quarter are expected to improve significantly over third quarter" in light of "weakness in early sales of holiday gifts." The stock tumbled 38.3% to 25-13/16 on Sept. 29 on the news. The direct seller had earlier told analysts that fourth quarter sales will be up about 2% versus Street expectations of 3% to 4% (1"The Rose Sheet" Sept. 13, In Brief). The company also expects to accelerate its share repurchase program through 2000