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 3%.

Lorillard, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 9.72% to $0.79 in the quarter versus EPS of $0.73 in the year-earlier quarter.

Revenue: Decreased 25.23% to $1.21 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Lorillard, Inc. reported adjusted EPS income of $0.79 per share. By that measure, the company beat the mean analyst estimate of $0.76. It beat the average revenue estimate of $1.16 billion.

Quoting Management: “Lorillard delivered strong financial and market share results in both the fourth quarter and full year of 2012 despite a heightened competitive environment,” stated Murray S. Kessler, Lorillard Chairman President and CEO. “We are very pleased to have delivered a double-digit shareholder return as measured by EPS growth and the dividend yield during 2012 and to have grown market share for the tenth consecutive year. We are confident in our ability to continue this strong financial performance in 2013, as reflected by our recent 3-for-1 stock split and today’s announcement of a 6.5% dividend increase.”

Key Stats (on next page)…

Revenue decreased 27.21% from $1.66 billion in the previous quarter. EPS increased 9.72% from $0.72 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.62 to a profit $0.63. For the current year, the average estimate has moved down from a profit of $2.8 to a profit of $2.79 over the last ninety days.

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