Revlon, Inc. (REV) recently surged into a new multi-year high on the heels of two consecutive strong earnings surprises. This Zacks #1 rank stock also has a bullish growth projection and high industry rank of 25 out of 264.
Company Description
Revlon, Inc., through its subsidiary, Revlon Consumer Products Corp,, manufactures and sells cosmetics and a wide line of various beauty products. The company was founded in 1932 and has a market cap of $957 million.
Revlon recently turned higher with the market, but shares also got a boost from the company’s strong Q1 results from late April that came in ahead of expectations.
First-Quarter Results
Revenue for the period was up 9% from last year to $333 million. Earnings also came in strong at 20 cents, 33% ahead of the Zacks Consensus Estimate.
From a geographic perspective, Revlon saw its biggest gain from Latin America, where sales were up an impressive 35% to $27 million. Its Europe, Middle East and Africa region saw sales increase 16% to $53 million while Asia Pacific was close behind with a 15.7% gain to $53 million.
Financial Profile
The company’s balance sheet was also on the upswing during the quarter, with cash and short-term investments almost doubling to $61 million against a total debt load of $1.17 billion.
Estimates
We saw some decent movement in estimates off the good quarter, with the current year adding 10 cents to $1.40 and the next-year estimate adding 18 cents to $1.58, a solid 13% growth projection.
But in spite of the gains, REV still has value, trading with a forward P/E of 13X, a discount to its peer average of 16X. Its PEG ratio is below 1, the traditional benchmark for value.
12-Month Chart
On the chart, REV recently jumped higher with the market to hit a new multi-year high. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.
REVLON INC-A (REV): Free Stock Analysis Report
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