NEW YORK (AP) -- Shares of beauty company Estee Lauder Cos. soared Tuesday after it reported better-than-expected fiscal fourth quarter results.
THE SPARK: Estee Lauder reported a 25 percent increase in net income for the quarter that ended June 30. Revenue rose 9 percent. The beauty company, whose brands include MAC, Aveda and Estee Lauder, also offered a first-quarter outlook and fiscal 2013 revenue forecast above expectations
THE ANALYSIS: Estee Lauder, which sells products in skin care, makeup, fragrance and hair category, is a premium fragrance powerhouse.
In the latest quarter, the beauty company saw solid sales across all regions. The success of its goods for travel also helped Estee Lauder's net income and revenue climb in the fourth quarter.
Lauder earned $51.2 million, or 13 cents per share, for the three-month period. A year earlier it made $41.1 million, or 10 cents per share. It reported local currency growth of 12 percent in the period, capping a year when the company reported local currency sales growth of 10 percent.
"This is well above just about any other U.S. staples company we know of, and it comes as a result of both decent underlying category growth and superior execution on the part of (Estee Lauder), " wrote Citigroup analyst Wendy Nicholson in a report published Tuesday.
Lauder President and CEO Fabrizio Freda said in a statement that the company will continue to put more of its efforts and resources into areas such as emerging markets, online and its travel retail segment.
SHARE ACTION: Estee Lauder's shares rose 9.3 percent, or $5.12 per share, to close at $60.13. That's near the high-end of its 52-week per share range of $40.76 to $65.60.