Reynolds American Earnings: Everything You Must Know Now

Reynolds American Inc. (NYSE:RAI) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Reynolds American Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.33% to $0.84 in the quarter versus EPS of $0.79 in the year-earlier quarter.

Revenue: Rose 0.14% to $2.18 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Reynolds American Inc. reported adjusted EPS income of $0.84 per share. By that measure, the company beat the mean analyst estimate of $0.83. It missed the average revenue estimate of $2.19 billion.

Quoting Management: “Second-quarter growth in Reynolds American’s earnings and margins reflected strong performance across all of our reportable business segments,” said Daniel M. Delen, president and chief executive officer. “Profits increased at RJR Tobacco, American Snuff and Santa Fe, and their powerful key brands delivered solid market-share gains.”

Key Stats (on next page)…

Revenue increased 15.72% from $1.88 billion in the previous quarter. EPS increased 16.67% from $0.72 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.86 to a profit $0.85. For the current year, the average estimate has moved up from a profit of $3.21 to a profit of $3.22 over the last ninety days.

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