Revlon (REV, $7.23) posts wider-than-expected Q2 loss

Revlon experienced a wider-than-expected  loss in the second quarter, amid covid-19 crisis.

The beauty/cosmetics company’s  adjusted loss of -$1.56 per share versus the Zacks Consensus Estimate of a loss of -$1.04. In the year-ago quarter, the loss was -$0.99 per share.

Revenue plunged -39% year-over-year to $347.6 million. Covid-19 led to an estimated negative impact of $214 million. Excluding the Covid-19 impact, net sales on a constant-currency basis were almost flat year-over-year.

However, e-commerce sales (accounting for 18% of total revenue in the quarter)climbed +58% from the year-ago quarter. Online sales accounted for 7% in the year-ago period.

REV enters an Uptrend because Momentum Indicator exceeded the 0 level on August 05, 2020

This indicator signals that REV's price has momentum to move higher, since its current price moved above its price 14 days ago. Traders may consider buying the ticker or exploring call options. In 70 of 92 cases where REV's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 76%.

Current price $7.18 is below $9.10 the lowest support line found by A.I. Throughout the month of 07/06/20 - 08/05/20, the price experienced a -22% Downtrend, while the week of 07/29/20 - 08/05/20 shows a +20% Uptrend.

Technical Analysis (Indicators)

Bullish Trend Analysis

The RSI Indicator points to a transition from a Downtrend to an Uptrend -- in cases where REV's RSI indicator exited the oversold zone, 23 of 36 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued Uptrend are 64%.

The Stochastic Indicator suggests the ticker price trend may be in a reversal from a Downtrend to an Uptrend. 45 of 62 cases where REV's Stochastic Indicator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued Uptrend are 73%.

The Moving Average Convergence Divergence (MACD) just turned positive. Considering data from situations where REV's MACD histogram became positive, in 29 of 40 cases, the price rose further within the following month. The odds of a continued Uptrend are 73%.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where REV advanced for three days, in 180 of 267 cases, the price rose further within the following month. The odds of a continued Uptrend are 67%.

The lower Bollinger Band was broken -- a price increase is expected as the ticker heads toward the middle band, which indicates a buy or call consideration for traders. In 28 of 42 cases where REV's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued Uptrend are 67%.

Bearish Trend Analysis

The Aroon Indicator entered a Downtrend today. In 158 of 192 cases where REV Aroon's Indicator entered a Downtrend, the price fell further within the following month. The odds of a continued Downtrend are 82%.

Fundamental Analysis (Ratings)

Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 73%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.86.

The Tickeron PE Growth Rating for this company is 25 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Valuation Rating of 44 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (-0.30) is normal, around the industry mean (26.26). P/E Ratio (0.00) is within average values for comparable stocks, (47.64). Projected Growth (PEG Ratio) (1.05) is also within normal values, averaging (1.12). REV has a moderately low Dividend Yield (0.00) as compared to the industry average of (2.03). REV's P/S Ratio (0.25) is slightly lower than the industry average of (2.15).

The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Price Growth Rating for this company is 97 (best 1 - 100 worst), indicating slightly worse than average price growth. REV’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron SMR rating for this company is 100 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. REV’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 65, placing this stock worse than average.

Contributor

Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.