NEW YORK (AP) -- Shares of Ulta Salon, Cosmetics and & Fragrances Inc. gained 12 percent in premarket trading Friday after quarterly results and its outlook surpassed Wall Street expectations.

On Thursday Ulta said its second-quarter net income climbed on cost cuts and stronger sales. Its adjusted net income of 25 cents per share beat the 18 cents-per-share prediction of analysts surveyed by Thomson Reuters. These estimates usually remove one-time items.

The company also gave a third-quarter earnings guidance above Wall Street's view.

Randal Konik of Jefferies & Co. of Jeffries & Co. left the company's "Hold" rating and $25 price target unchanged, partly due to current prices for Ulta's stock price and difficult comparisons for the fourth quarter and first half of 2011.

Konik is also concerned about a change in executives at the top. Charles Rubin has been named to succeed Lyn Kirby as CEO.

"Changes in corporate policies/procedures, employee turnover and uncertainty regarding Ulta's vendor relationships could be disruptive in the near term," he wrote.

Ulta's stock surged $2.75 to $24.98 in premarket trading.