Why Avon Products Stock Sank 11% on Thursday
Shares of Avon Products, Inc. (NYSE: AVP) stock closed down 10.7% on Thursday, after Avon reported its financial results for the second quarter of 2017.
The earnings news was even worse than last quarter. Sales declined 3% to $1.4 billion. Operating profit margins plunged 430 basis points to 2.3%. By the time interest on the company's debt, taxes, and other expenses had been deducted, Avon ended up with a loss of $0.12 per share on its bottom line -- a huge reversal from last year's Q2 profit of $0.06 per share.
It probably goes without saying that investors were not pleased with the result. After all, Wall Street had told investors to expect profits of $0.07 per share from Avon. The fact that the company failed to earn any profit at all, but lost money instead, naturally had people a bit upset.
Source: Fool.com
