Reynolds American Earnings: Your Sneak Peek to the Big Announcement

Reynolds American (NYSE:RAI) will report earnings before markets open on Wednesday, July 24th. Reynolds American Inc., through its subsidiaries, manufactures tobacco and smokeless tobacco products. The Company’s subsidiary sells its products in the United States and its territories.

Here is your Cheat Sheet to Reynolds American Earnings:

Earnings Expectations: Analysts expect earnings of $0.83 per share on revenues of $2.19 billion. Currently, the company’s P/E ratio stands at 19.54.

Analyst Trends:

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 is a profit of $3.22, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Reynolds American has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 8,845 8,419 8,551 8,541 8,304
Diluted EPS ($) 2.29 1.65 1.90 2.40 2.24

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 2,176.00 2,117.00 2,078.00 1,883.00
Diluted EPS ($) 0.78 0.74 0.25 0.92

Past Performance:
Reynolds American has beat analyst estimates 3 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

“E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our successful CHEAT SHEET investing framework. Don’t waste another minute – click here to discover our CHEAT SHEET stock picks now!

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