Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of beauty retailer Ulta Salon (Nasdaq: ULTA) jumped as much as 14% in early trading today after the company reported earnings last night.

So what: First-quarter revenue jumped 21%, to $386.0 million, easily passing estimates of $371.6 million. Earnings per share also surprised investors, reaching $0.37, $0.06 ahead of estimates.

Now what: Second-quarter guidance was also slightly ahead of expectations, so the beauty industry is in a strong position right now. I'm a little leery of the valuation of Ulta Salon, trading at 28 times forward earnings, but the company's solid growth warrants a high price. I don't see enough value to jump into shares today, but the improving results are encouraging for current shareholders.

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