Lorillard Earnings: Here’s Why Investors are Excited Now

Lorillard, Inc. (NYSE:LO) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.47%.

Lorillard, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 10.96% to $0.81 in the quarter versus EPS of $0.73 in the year-earlier quarter.

Revenue: Decreased 25.59% to $1.29 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Lorillard, Inc. reported adjusted EPS income of $0.81 per share. By that measure, the company beat the mean analyst estimate of $0.8. It beat the average revenue estimate of $1.28 billion.

Quoting Management: “I am pleased that, in a challenging external environment, Lorillard delivered another high quality earnings quarter marked by stable cigarette volumes, strong market share gains, tight cost control and continued success of the Company’s strategic initiatives, like blu eCigs. As a result, Lorillard has grown adjusted EPS 12% during the first half of the year,” said Murray S. Kessler, Lorillard Chairman, President and CEO. “With continued industry leading fundamentals, our plans to launch Newport Non-Menthol Gold, the continued success of blu eCigs and our recently increased share repurchase authorization, we are confident in our ability to continue our strong operational and financial performance throughout 2013 and into 2014.”

Key Stats (on next page)…

Revenue decreased 18.33% from $1.58 billion in the previous quarter. EPS increased 22.73% from $0.66 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.8 and has not changed. For the current year, the average estimate has moved up from a profit of $3.11 to a profit of $3.12 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)