NEW YORK (TheStreet) -- Avon Products (AVP) shares lost one-fifth of their value in Thursday trading after missing Wall Street expectations on third-quarter earnings. Shares had given up 23.2% to $17.20 by 12:35 p.m. EDT.
For the period ended September, revenue of $2.26 billion was 7% lower than a year earlier, disappointing analysts surveyed by Thomson Reuters who hoped for $2.44 billion. Earnings of 14 cents a share fell short of the expected 19 cents a share.
"The third quarter was tough. Our quarterly performance was negatively impacted by macroeconomic headwinds and continued weakness in some parts of our business, particularly North America," said CEO Sheri McCory in a statement.
In North America, revenue dropped 19% and the number of direct-selling representatives decreased by 16%. In emerging markets Mexico and Russia, sales fell 5% and 2% respectively.Separately, in an Securities and Exchange Commission filing, Avon said the SEC had proposed a potential settlement for an investigation into alleged bribery in overseas markets. Avon said the SEC's proposed terms of settlement were "of a magnitude significantly greater than our earlier offer" and such penalties were "unwarranted". Earlier in the year, the company had offered $12 million to settle the matter. Written by Keris Alison Lahiff.
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 + 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