Cosmetics Companies Make Up Ground

The good news kept coming for cosmetics makers on Tuesday, and shares rose after Avon Products Inc.—direct seller of makeup and beauty-related products—reported fourth-quarter net income ahead of analysts’ estimates.

Last week, both Estee Lauder Cos. and Elizabeth Arden Inc. reported fiscal second-quarter profit that beat analyst expectations.

Avon Products said earnings grew to 41 cents per share from 40 cents a year ago. Analysts predicted earnings of 38 cents per share. Revenue grew 9 percent to $2.5 billion.

Goldman Sachs analyst Amy Low Chasen said results were strong and operating results were much better than expected.

“(Results) show that management is being aggressive in taking charges up front (charges were $86 million versus our $52.7 million estimate) in an effort to drive cost savings and a turnaround for the long term,” Chasen wrote in a note to investors on Tuesday.

Investors also applauded results, sending shares up $3.31, or 9.6 percent, to $37.93 in midday trading on the New York Stock Exchange, after earlier hitting a new 52-week high of $38.37.

Elizabeth Arden shares jumped $1.06, or 5.1 percent to $21.85 on the Nasdaq. The stock traded between $13.63 and $24.58 over the past 52 weeks.

Estee Lauder shares rose 13 cents to $46.75 on the NYSE. Revlon Inc. shares rose a penny to $1.35 and Nu Skin Enterprises Inc. rose 49 cents, or 2.7 percent to $18.83.