Avon Profit Plunges, But Shares Surge - TheStreet

NEW YORK (

TheStreet

) --

Avon Products

(AVP) - Get Report

saw a 65% plunge in its second-quarter earnings, but the company's shares spiked in morning trading after the company surpassed Wall Street expectations.

During the quarter, Avon earned $82.9 million, or 19 cents a share, compared with $235.6 million, or 55 cents, in the year-ago period.

Excluding a restructuring charge of 19 cents a share, the company posted EPS of 38 cents, beating analysts' expectations of 34 cents.

Revenue fell 10% to $2.47 billion from $2.74 billion last year, hurt by a stronger U.S. dollar. Minus the impact of currency changes, sales were actually up 5%, Avon said.

Last week the company announced plans to

slash 1,200 corporate jobs

by 2013. The layoffs are part of a turnaround effort to save $200 million by 2012 or 2013.

Avon has also put in place a marketing push to increase the number of its famed sales representatives. In the quarter its ranks grew 11%, as the influx of laid off workers has helped in recruiting efforts.

In midday trading Thursday, Avon Shares were changing hands at $32.49, up more than 9% from the previous close.

-Reported by Jeanine Poggi in New York.

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