Lorillard, Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Lorillard, Inc. (NYSE:LO) will unveil its latest earnings on Monday, October 24, 2011. Lorillard 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 net income of $2.04 per share, a rise of 12.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $2.11. Between one and three months ago, the average estimate moved down. It has been unchanged at $2.04 during the last month. Analysts are projecting profit to rise by 14.5% versus last year to $7.76.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 3 cents, reporting profit of $2.05 per share against a mean estimate of net income of $2.02 per share.

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

Wall St. Revenue Expectations: On average, analysts predict $1.14 billion in revenue this quarter, a rise of 6.5% from the year ago quarter. Analysts are forecasting total revenue of $4.46 billion for the year, a rise of 10.1% from last year’s revenue of $4.05 billion.

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

A Look Back: In the second quarter, profit rose 10.6% to $291 million ($2.05 a share) from $263 million ($1.73 a share) the year earlier, exceeding analyst expectations. Revenue rose 11.3% to $1.69 billion from $1.52 billion.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 6.9% in the first quarter and 7% in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue rose 12.9% in the first quarter from the year earlier, climbed 7.8% in the fourth quarter of the last fiscal year from the year-ago quarter and 10.4% in the third 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), Alliance One Intl., Inc. (NYSE:AOI), and Universal Corporation (NYSE:UVV).

Stock Price Performance: During July 25, 2011 to October 18, 2011, the stock price had risen $5.59 (5.3%) from $106.05 to $111.64. 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% (+$9.52) over that span. It saw one of its worst periods between May 31, 2011 and June 7, 2011 when shares fell for six-straight days, falling 15.7% (-$17.87) over that span. Shares are up $32.77 (+41.5%) year to date.

(Source: Xignite Financials)

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.