What happened

Shares of Estee Lauder (NYSE:EL) were looking stunning today as the stock jumped after the cosmetics giant posted a blowout second-quarter earnings report and raised its full-year guidance.

As of 11:37 a.m. EST, the stock was up 13.1%.

So what  

Riding a wave of strong growth in China and the broader Asia-Pacific region, bucking a trend of weak growth in China seen elsewhere in the market, Estee Lauder posted overall revenue growth of 7% to $4.01 billion, topping $4 billion in a quarter for the first time and beating estimates of $3.92 billion. Adjusting for currency exchange and the new revenue recognition standard, revenue was up 11%.

Several lipsticks facing upwards.

Image source: Getty Images.

Constant-currency sales in Asia jumped 20% and were up 16% in Europe, the Middle East, and Africa, but the company continued to struggle in the Americas region, where the top line fell 6%. Estee Lauder, which owns several brands including MAC, Clinique, and Aveda, said growth in the quarter was driven by the skin care segment and brands including La Mer, Estee Lauder, and MAC. 

On the bottom line, adjusted earnings per share increased 22% to $1.86, which was well ahead of estimates at $1.54.

CEO Fabrizio Freda summed up the quarter, saying, "We delivered an excellent performance in our fiscal second quarter. Importantly, this was our eighth consecutive quarter of impressive net sales growth that met or exceeded our long-term goal, all while navigating many global macro issues." 

Check out the latest Estee Lauder earnings call transcript.

Now what 

Estee Lauder's result conforms with those of Procter & Gamble, which recently reported strong growth in its beauty division, driven by performance in skin care. However, not all cosmetics companies are thriving, as Coty has faced supply chain challenges lately and Avon Products remains in disarray, a sign that Estee Lauder is executing better than some of its rivals.

Management lifted its full-year guidance, saying it expects global prestige beauty sales to increase 5% to 6% for the year, gaining market share. It also sees full-year earnings per share rising to $4.92-$5.00, up from $4.51 and better than estimates of $4.86.

Given the strong results and the guidance hike, it's not surprising to see Estee Lauder stock surging today.