S&P 500 (NYSE:SPY) component Lorillard, Inc. (NYSE:LO) reported its results for the second quarter. Lorillard, Inc. manufactures and sells cigarettes and tobacco under the brand names of Newport, Kent, True, Maverick and Old Gold.
Lorillard Earnings Cheat Sheet for the Second Quarter
Results: Net income for Lorillard, Inc. rose to $291 million ($2.05 per share) vs. $263 million ($1.73 per share) in the same quarter a year earlier. This marks a rise of 10.6% from the year earlier quarter.
Revenue: Rose 11.3% to $1.69 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: LO beat the mean analyst estimate of $2.02 per share. It beat the average revenue estimate of $1.15 billion.
Quoting Management: “Lorillard delivered strong second quarter results, despite the difficult macro-economic conditions. These results continue to demonstrate the fundamental strength of our brands and our organization,” said Murray S. Kessler, Chairman, President and Chief Executive Officer. “We are particularly pleased with the impact of our new strategic growth initiatives, highlighted by the successful introduction of Newport Non-Menthol.”
The company has now seen net income rise in four straight quarters. In the first quarter, net income rose 6.9% while the figure climbed 7% in the fourth quarter of the last fiscal year and 16.6% in the third quarter of the last fiscal year from the year earlier.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 14 cents in the first quarter, by 7 cents in the fourth quarter of the last fiscal year, and by 17 cents in the third quarter of the last fiscal year.
Gross margin shrank 0.3 percentage point to 35.4%. The contraction appeared to be driven by increased costs, which rose 11.8% from the year earlier quarter while revenue rose 11.3%.
Revenue has risen the past four quarters. Revenue increased 12.9% to $1.53 billion in the first quarter. The figure rose 7.8% in the fourth quarter of the last fiscal year from the year earlier and climbed 10.4% in the third quarter of the last fiscal year from the year-ago quarter.
Competitors to Watch: Reynolds American, Inc. (NYSE:RAI), Altria Group, Inc. (NYSE:MO), Vector Group Ltd. (NYSE:VGR), Philip Morris Intl. Inc. (NYSE:PM), British American Tobacco (AMEX:BTI), Star Scientific, Inc. (NASDAQ:CIGX), Alliance One Intl., Inc. (NYSE:AOI), and Universal Corporation (NYSE:UVV).
(Source: Xignite Financials)