Lorillard, Inc. Second Quarter Earnings Preview

S&P 500 (NYSE:SPY) component Lorillard, Inc. (NYSE:LO) will unveil its latest earnings on Monday, July 25, 2011. Lorillard, Inc. manufactures and sells cigarettes and tobacco under the brand names of Newport, Kent, True, Maverick and Old Gold.

Lorillard, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $2.02 per share, a rise of 16.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.98. Between one and three months ago, the average estimate moved up, and has risen from $2 during the last month. For the year, analysts are projecting net income of $7.76 per share, a rise of 14.5% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 14 cents, reporting profit of $1.71 per share against a mean estimate of net income of $1.57 per share.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $1.15 billion in revenue this quarter, a rise of 10.6% from the year ago quarter. Analysts are forecasting total revenue of $4.49 billion for the year, a rise of 10.9% from last year’s revenue of $4.05 billion.

Analyst Ratings: Analysts seem relatively indifferent about Lorillard with seven of nine analysts surveyed maintaining a hold rating.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 6.9% while it rose 7% in the fourth quarter of the last fiscal year and 16.6% in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 12.9% to $1.53 billion in first quarter. The figure rose 7.8% in the fourth quarter of the last fiscal year from the year earlier, climbed 10.4% in the third quarter of the last fiscal year from the year-ago quarter and 0.1% in the second quarter of the last fiscal year.

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), Imperial Tobacco Group PLC (ITYBY), Alliance One Intl., Inc. (NYSE:AOI), and Universal Corporation (NYSE:UVV).

Stock Price Performance: During April 21, 2011 to July 19, 2011, the stock price had risen $12.46 (12.7%) from $98.09 to $110.55. The stock price saw one of its best stretches over the last year between April 18, 2011 and May 3, 2011 when shares rose for 11-straight days, rising 10% (+$9.63) over that span. It saw one of its worst periods between September 24, 2010 and October 4, 2010 when shares fell for seven-straight days, falling 3.3% (-$2.59) over that span. Shares are up $30.76 (+38.6%) year to date.

(Source: Xignite Financials)

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