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Coty reported a 29 percent drop in profit during its fiscal second quarter as costs as acquisition-related costs piled up

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NEW YORK — Coty reported a drop in profit during its fiscal second quarter as costs related to acquisitions piled up. But the makeup and fragrance company's adjusted earnings and revenue beat Wall Street expectations and its shares soared Thursday.

Coty is in the process of buying beauty brands from Procter & Gamble Co., including CoverGirl and Max Factor. That deal is expected to close in the second half of the year, but Coty said it has already taken control of some of P&G's fragrance brands, including Gucci and Hugo Boss. The company said it has closed on a deal to buy Brazilian beauty company Hypermarcas this week that will help it expand in that country.

The New York company also announced that it approved a plan to buy back $500 million worth of its own shares.

Coty reported net income of $89 million, or 25 cents per share, in the three months ending Dec. 31, compared with $125.4 million, or 35 cents per share, in the same period a year ago. Acquisition-related costs amounted to $45.5 million, the company said.

Earnings, adjusted for one-time gains and costs, were 38 cents per share, exceeding Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 34 cents per share.

Revenue fell about 4 percent to $1.21 billion in the period, which also topped Street forecasts. Six analysts surveyed by Zacks expected $1.2 billion.

Coty sells OPI nail polish and Rimmel makeup. It also produces celebrity fragrances, such as Beyonce, Halle Berry and Katy Perry.

Shares of Coty Inc. jumped $3.75, or 15.2 percent, to $28.36 in afternoon trading Thursday. Its shares are up almost 50 percent over the past year.

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This story has been corrected to say that its revenue met Wall Street expectations, not beat them.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on COTY at http://www.zacks.com/ap/COTY

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Keywords: Coty, Earnings Report

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