Dial, Avon Post Solid Results
Sales of liquid hand soap and food products helped Dial post a net profit of $35.5 million, or 37 cents a share, better than analysts' estimates, and up from $33.4 million, or 35 cents a share, a year earlier.
"Overall, we achieved favorable results for the second quarter in a challenging economic and retail environment," said Herbert M. Baum, the company's chairman, president and chief executive.
The company also raised its outlook for full-year 2003 earnings by 2 cents a share to $1.33, while revenue growth is expected to be around 3% this year.Separately, Avon said its earnings exceeded the company's forecast, with the help of a weaker dollar, lower tax expenses, growth in product sales and a larger team of salespeople. The cosmetics merchant posted earnings of $171.5 million, or 71 cents a share, up from $155 million, or 64 cents a share, in the year-ago period. Analysts had expected Avon to post a profit of 69 cents a share. Net revenue rose 8% to $1.64 billion in the quarter. Avon forecast 2003 earnings of $2.65 a share, above analysts' projections of $2.57 a share. But third-quarter profit is expected to fall slightly short of Wall Street estimates of 55 cents a share. Chairwoman and CEO Andrea Jung said that "2003 is shaping up as our fourth consecutive year of meeting or exceeding our financial targets." She added, "Our operations around the world continue to perform very well ... based on strong fundamentals of our business." After reacting positively to the news early Wednesday, shares of both companies were losing ground amid weakness in the broader market. Dial shares were down 25 cents, or 1.3%, at $19.06, while Avon shares were down 15 cents, or 0.2%, at $63.55.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV