Shares of iconic makeup company Revlon (NYSE: REV) rose just over 28% at one point in trading on Nov. 5. By about 3:30 p.m. EDT they were holding on to most of those gains, sitting at a nearly 25% advance. The big story was earnings, which presented some major positive news. However, there are also some negatives here about which investors need to be wary.
Revlon's sales were up 9.2% year over year, hitting $521.1 million in the third quarter of 2021. There was strength across all four of the company's business segments. Gross profit increased 23.5% with gross profit margin expanding by 670 basis points. Operating income went from a loss of $9.7 million in the third quarter of 2020 to a profit of $34.1 million this year. So far so good. But the company lost $0.99 per share in the quarter, which was worse than the per-share loss of $0.83 in the same quarter of 2020. What's going on?
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Why Revlon Stock Rocketed as Much as 28% Today