Back to top

Image: Bigstock

Reynolds American Inc.

Read MoreHide Full Article

Reynolds American delivered lower-than-expected first-quarter 2017 results, wherein both the company’s top and bottom lines missed estimates but increased on a year-over-year basis. Nevertheless, the company’s earnings of $0.56 per share rose 12% from the prior-year quarter, driven by increase cigarette and moist-snuff pricing, double-digit increases in operating income of both Santa Fe and American Snuff segments, coupled with a lower tax rate. Net sales also improved 1.1% year over year driven by higher sales across the Santa Fe and American Snuff segments. In fact, shares of Reynolds have been outperforming the Zacks categorized Tobacco industry in the last one year. Investors are also looking forward towards the highly anticipated Reynolds-British American merger. However, increased competition in the vapor category, declining volumes and strict anti-smoking regulations remain its concerns.

Published in