Reynolds American Meets Forecasts on Higher Profit

by Christopher Freeburn | October 23, 2012 2:17 pm

Reynolds American (NYSE:RAI[1]) announced on Tuesday that it earned $420 million during the third quarter[2], up almost 7% from $394 million in the same period last year. Adjusted EPS was 79 cents, which met Wall Street expectations, the Associated Press noted.

The cigarette-maker recorded revenue, excluding excise taxes, of $2.12 billion, down about 4% from $2.2 billion in 2011.That fell short of the $2.18 billion anticipated by analysts.

Investors weren’t impressed. Shares of Reynolds American fell almost 2% in Tuesday afternoon trading.

The company reiterated its previously issued earnings guidance for the year, predicting a profit of between $2.91 and $3.01 a share.

Company officials said volume dropped to 17.4 billion cigarettes, down 7% compared to last year. Industrywide cigarette volumes dipped 2.7% over last year.

Last week, Philip Morris International (NYSE:PM[3]) reported lower third-quarter earnings and revenue[4] that missed Wall Street estimates.

Endnotes:
  1. RAI: http://studio-5.financialcontent.com/investplace/quote?Symbol=RAI
  2. during the third quarter: http://www.google.com/hostednews/ap/article/ALeqM5h71LGBr_KG6TmyjgNpSF0tpNAJug?docId=a6469c9bc6504287ae10a154e252b15b
  3. PM: http://studio-5.financialcontent.com/investplace/quote?Symbol=PM
  4. reported lower third-quarter earnings and revenue: http://investorplace.com/2012/10/philip-morris-shares-dip-on-lower-sales/

Source URL: http://investorplace.com/2012/10/reynolds-american-meets-forecasts-on-higher-profit/
Short URL: http://invstplc.com/1nuanb4