Shares of Avon Products jumped 14 percent Tuesday after the cosmetics company beat Wall Street expectations for quarterly earnings, with reported growth in nine out of 10 markets.
The company brought in 7 cents per share for the second-quarter, versus 2 cents expected by analysts polled by Thomson Reuters. Total revenue fell from $1.56 billion to $1.43 billion, in line with consensus expectations.
A stronger dollar took a toll Avon's bottom line, with foreign currency adding a 10 cent-per-share impact, the company said.
"Our performance improvements were broad-based with 9 of our top 10 markets growing in local currency," CEO Sherilyn McCoy said on the earnings call. "While we recognize that it's still early on our transformation and much effort and work lies ahead, I remain confident. Avon is on a path to sustainable, profitable growth."
The North American business of Avon is run independently from Avon Products, but is "in good hands", McCoy said. Avon announced a sale of a 80.1 percent stake in its U.S. and Canada division to New York-based private investment firm Cerberus Capital Management last December. Avon Products kept the remaining 19.9 percent, and will have two directors on the board. The strategic partnership deal closed in March.>
The stock closed at $4.76 Tuesday, down from their 52-week high of $6.69. Shares have risen about 17 percent this year but are down 16 percent year over year.