Estée Lauder (NYSE:EL) surged in morning trading after a bump in makeup sales propelled the skincare maker to lift its quarterly dividend 25% while posting a 36% jump in its first-quarter profit.
Shares climbed 9.5% to $88.06 at 9:43 a.m. in New York, expanding this year's rally to 14%.
The New York-based company said in a statement on Monday that it hiked its quarterly dividend to $0.30 per share from $0.24 per share.
This dividend will be payable on December 15 to stockholders of record at the close of business on November 30.
Net income rose to $309.3mln, or $0.82 per share, in the fiscal first quarter ended Sept.30, from $228.1mln, or $0.59 per share, a year earlier.
Revenue rose nearly 8% to $2.83bn.
Analysts on average had expected earnings of $0.70 per share and revenue of $2.78bn, according to Capital IQ.
Sales in the make-up division increased 14% to $1.16bn in the first quarter, from a year earlier.
Estee Laude has been working on catering to younger customers by offering brands such as Jo Malone and Bobbi Brown, as its old brands have lose some shine in North America, its largest arket.