What happened

Shares of Coty (NYSE:COTY) jumped as much as 21.2% Thursday, following the beauty products company's first-quarter results for fiscal 2018. The stock is up about 15% at the time of this writing.

The stock's rise likely reflects the quarter's better-than-expected profit. Coty's adjusted earnings per share for the quarter were $0.10. On average, analysts were expecting adjusted EPS of $0.07. Revenue of $2.24 billion was in line with analysts' consensus estimate for the quarter.

Nail polish containers on a wood table

Image source: Getty Images.

So what

Coty's revenue of $2.24 billion and adjusted EPS of $0.10 compare to $1.08 billion and $0.23 in the year-ago quarter, respectively. Excluding the favorable impact on revenue of Coty's acquisitions of hair-care line ghd and cosmetics company Younique, Coty's organic revenue during the quarter was down 2% year over year in constant currency.

The quarter comes after a worse-than-expected fourth quarter that sent shares plummeting in August.

"Q1 was a much better quarter," explained Coty CEO Camillo Pane. "We saw strong growth in Luxury, continued positive momentum in Professional and a reduced net revenue decline in the Consumer Beauty division."

What now

Looking ahead, Pane expects quarter-to-quarter results to be "uneven." But he said that the company's improving revenue trends gave him confidence in the company's growth strategy, which he says is "moving Coty gradually onto a path of full recovery."

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.