Revlon up on second-quarter news -- am I wrong about company?

Filed under: Earnings reports, Revlon (REV), Avon Products (AVP)

Revlon, Inc. (NYSE: REV) is, simply put, not one of my favorite investment ideas. However, the market seems to think that the company's second-quarter report is nothing less than beautiful. As I write this, shares are rallying almost 8% (although volume isn't that great, to be honest).

I don't know, I just don't see it. Sales declined over 12%. What's that, you want to strip out currency effects? Okay: sales went down over 7% on that basis. Net income on a reported basis was nothing, 0 cents per share. There were, however, 36 cents of charges on the books. According to Earnings.com, Revlon was expected to lose around 8 cents per share. Another source says that 25 cents before special items was the number to hit. No matter how you slice it, I think we can say that management delivered a significant beat today.

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Revlon up on second-quarter news -- am I wrong about company? originally appeared on BloggingStocks on Thu, 30 Jul 2009 16:40:00 EST. Please see our terms for use of feeds.

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