Revlon Shares Soar on Surprise Profit

(Updated with reports from Avon and Elizabeth Arden.)

NEW YORK(TheStreet) -- Revlon(REV Quote) is soaring in morning trading after reporting an unexpected profit in the third quarter.

During the quarter, the cosmetics maker earned $23.1 million, or 45 cents a share, compared with a profit of $29.2 million, or 57 cents, in the year-ago period. Analysts were looking for a loss of 16 cents a share.

Sales slipped 2.5% to $326.2 million, as the company saw weakness in color cosmetics and its Revlon Beauty Tools segment.

Shares of the company have surged by 39.1% to $8.04.

Elizabeth Arden (RDEN Quote) also posted a surprise profit, sending its shares climbing 3.7% to $11.98 early in the day.

The company, which makes Britney Spears fragrances and Prevage anti-aging cream, earned $40,000, or flat per share, compared with a loss of $12.5 million, or 45 cents, in the same quarter last year.

Sales declined 7% to $265.2 million from $284.2 million a year earlier.

Looking ahead, Elizabeth Arden foresees second-quarter earnings between 65 cents and 75 cents a share.

But other beauty and cosmetic companies were not so lucky. Avon Products(REV Quote) posted a 30% plunge in quarterly profit, weighed down by the stronger dollar.

During the quarter, the company earned $156.2 million, or 36 cents a share, compared with $222.6 million, or 52 cents, last year.

Excluding costs related to job cuts and restructuring, Avon actually earned 42 cents a share, better than the 40 cents analysts forecast.

North American revenue slipped 8%, more than the 2% analysts expected, sending shares falling 2% to $32.36 this morning.

-- Reported by Jeanine Poggi in New York

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