Reynolds American Inc. is one of the leading manufacturer and seller of cigarettes and smokeless tobacco products in U.S. and owns popular brands like Camel and Pall Mall.
Reynolds has seen soft cigarette shipment volume trends for the past few quarters, due to a general shift away from tobacco products resulting from accelerating prices of cigarettes and worldwide anti-tobacco campaigns.
The company is thus putting greater focus on the growing electronic cigarettes to boost sales. Reynolds completed its nationwide expansion of its e-cigarette brand Vuse which affected sales positively. The company agreed to the merger proposal of British American Tobacco, under which the latter will take over the remaining 57.8% of Reynolds for $49 billion. The deal, expected to close in the third quarter of 2017, is still subject to shareholder approval from the participating companies, as well as regulatory approvals and other customary closing conditions.
Investors should also note that earnings estimate for RAI has more or less remained unchanged during the last 30 days. RAI does not have a decent history when it comes to recent earnings reports as the stock has posted negative surprises in three of the last four quarters and inline result in the remaining quarter, with an average negative surprise of 3.40%.
Currently, RAI has a Zacks Rank #4 (Sell), but that could definitely change following Reynolds' earnings report which was just released.
You can see the complete list of today’s Zacks #1 Rank stocks here.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: RAI reported higher than expected earnings. Our consensus earnings estimate called for EPS of 60 cents, while RAI reported earnings of 62 cents. Investors should note that these figures take out stock option expenses.
Revenues: RAI reported revenues of $3.18 billion. This missed our consensus estimate of $3.20 billion.
Key Stats to Note: Operating Income increased 22% year over year. Cigarette shipments decreased 2.3% from the prior year quarter.
Stock Price: Inactive in pre-market trading
Check back later for our full write up on this RAI earnings report later.
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Reynolds American (RAI) Q4 Earnings Beat, Sales Miss Estimates
Reynolds American Inc. is one of the leading manufacturer and seller of cigarettes and smokeless tobacco products in U.S. and owns popular brands like Camel and Pall Mall.
Reynolds has seen soft cigarette shipment volume trends for the past few quarters, due to a general shift away from tobacco products resulting from accelerating prices of cigarettes and worldwide anti-tobacco campaigns.
The company is thus putting greater focus on the growing electronic cigarettes to boost sales. Reynolds completed its nationwide expansion of its e-cigarette brand Vuse which affected sales positively. The company agreed to the merger proposal of British American Tobacco, under which the latter will take over the remaining 57.8% of Reynolds for $49 billion. The deal, expected to close in the third quarter of 2017, is still subject to shareholder approval from the participating companies, as well as regulatory approvals and other customary closing conditions.
Reynolds American Inc Price, Consensus and EPS Surprise
Reynolds American Inc Price, Consensus and EPS Surprise | Reynolds American Inc Quote
Investors should also note that earnings estimate for RAI has more or less remained unchanged during the last 30 days. RAI does not have a decent history when it comes to recent earnings reports as the stock has posted negative surprises in three of the last four quarters and inline result in the remaining quarter, with an average negative surprise of 3.40%.
Currently, RAI has a Zacks Rank #4 (Sell), but that could definitely change following Reynolds' earnings report which was just released.
You can see the complete list of today’s Zacks #1 Rank stocks here.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: RAI reported higher than expected earnings. Our consensus earnings estimate called for EPS of 60 cents, while RAI reported earnings of 62 cents. Investors should note that these figures take out stock option expenses.
Revenues: RAI reported revenues of $3.18 billion. This missed our consensus estimate of $3.20 billion.
Key Stats to Note: Operating Income increased 22% year over year. Cigarette shipments decreased 2.3% from the prior year quarter.
Stock Price: Inactive in pre-market trading
Check back later for our full write up on this RAI earnings report later.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>