Shares of Avon took off like a roadrunner on Tuesday after the company released a strong earnings report for its second quarter. The stock has seen gains as high as 32% since Monday’s low.
Avon posted an earnings per share of $0.07, which came in even with a year ago and was past the expectations of the $0.02 that Wall Street had. Revenue matched expectations but fell 8% to $1.43 billion. It did however increase 5% on a constant-dollar basis and excluding the sale of Liz Earle.
CEO Sheri McCoy commented that the cosmetic company’s results were “slightly above our expectations” due to better-than-expected operating expectations.
The company is in the middle of a long turnaround strategy and had sold its North American business to Cerberus Capital Management in March for $435 million and also said it would cut 7% of its workforce and move its headquarters to the U.K.
Disclaimer: We have no position in Avon Products (NYSE: AVP) and have not been compensated for this article.