Reynolds American Earnings: No New Cigarette Tricks
S&P 500 (NYSE:SPY) component Reynolds American, Inc. (NYSE:RAI) reported its results for the first quarter. Reynolds American, Inc. manufactures cigarettes and other tobacco products in the United States.
Reynolds American Earnings Cheat Sheet for the First Quarter
Results: Net income for the cigarette company rose to $353 million (60 cents/share) vs. $82 million (14 cents/share) YoY. A more than fourfold rise from the year earlier quarter.
Revenue: Rose 0.3% to $1.99 billion YoY.
Actual vs. Wall St. Expectations: RAI beat the mean analyst estimate of 57 cents/share. Estimates ranged from 55 cents per share to 60 cents per share.
Quoting Management: “RAI has made a solid start to the year, delivering higher first-quarter earnings driven by continued momentum in its operating companies’ key brands,” said Daniel M. Delen, who became RAI’s president and chief executive officer on March one. “With further improvements in productivity also contributing to the bottom line, I’m pleased to reaffirm today our projections for full-year adjusted EPS growth in the mid- to high-single digits.”
The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 43.7% and in the third quarter of the last fiscal year, the figure rose 5.2%.
Competitors to Watch: Lorillard Inc. (NYSE:LO), Altria Group, Inc. (NYSE:MO), Vector Group Ltd. (NYSE:VGR), Philip Morris Intl. Inc. (NYSE:PM), British American Tobacco (ADR) (AMEX:BTI), Star Scientific, Inc. (NASDAQ:CIGX), Imperial Tobacco Group PLC (ADR) (ITYBY), Wellstone Filter Sciences, Inc. (AURI), and Universal Corporation (NYSE:UVV).
Today’s Performance: Shares of RAI are trading at $36.28, down 0.03% from the previous closing price of $36.29.