When Avon Products (AVP) reports second-quarter results Thursday morning, a more than 60% drop in year-over-year earnings per share is what Wall Street is expecting.Citi analysts are looking for earnings of 7 cents per share, a penny below consensus estimates; Citi’s estimate is about 65% below the year-ago result of 20 cents per share.
Two key markets are a focus this quareter, Brazil and Russia. Apart from the impact of weaker currencies, regulatory change in Brazil — taxes on cosmetics — are a big things to watch.
AVP is in a long downtrend. Shares recently stopped at $ 5.22.The stock is down 44% so far this year, and down 60% over 12 months. Todays 52W Range is 5.22 - 13.97.
However, there are investors who buy AVP, relying on a long-term perspective. Capital Research and Management Company at 30 June bought 44 million shares. My VaR analysis for today's session showed 1% probability of a dailyfall of AVP under $ 4.84 and a drop below $ 4.46 for the next five working days. The average price yield was -0.39% (last 267 working days). RSI remains in the oversold zone of = 26.95.
Jr.Trader G.Hristov
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