Lorillard Earnings: Here’s Why the Stock is Rising 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 2.46%.

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Lorillard, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 13.79% to $0.66 in the quarter versus EPS of $0.58 in the year-earlier quarter.

Revenue: Decreased 25.82% to $1.13 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Lorillard, Inc. reported adjusted EPS income of $0.66 per share. By that measure, the company beat the mean analyst estimate of $0.64. It beat the average revenue estimate of $1.11 billion.

Quoting Management: “Lorillard posted strong market share and financial results in the first quarter of 2013 in the face of a difficult macroeconomic environment and highly competitive cigarette market,” stated Murray S. Kessler, Chairman, President and CEO. “We are off to a solid start to the year, with good topline growth, strong market share growth in cigarettes and electronic cigarettes, and operating margin expansion, all translating to robust earnings growth. Earnings per share were once again boosted by our ongoing share repurchase program, and resulted in our highest level of quarterly EPS growth since 2011. We are confident in our ability to continue to reward shareholders with double-digit total shareholder returns as measured by EPS growth and the dividend yield over the long term.”

Key Stats (on next page)…

Revenue decreased 33.57% from $1.7 billion in the previous quarter. EPS decreased 16.46% from $0.79 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 $0.78 to a profit $0.8. For the current year, the average estimate has moved up from a profit of $3.04 to a profit of $3.09 over the last ninety days.

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

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