Courtesy of Benzinga.
Reynolds American (NYSE: RAI) reported a 6.7% rise in its second-quarter profit and raised the lower end of its full-year profit forecast.
The Winston-Salem, North Carolina-based company posted a quarterly profit of $492 million, or $0.92 per share, versus a year-ago profit of $461 million, or $0.84 per share. Excluding certain items, its adjusted earnings surged to $0.89 per share from $0.84 per share.
Its revenue rose 0.8% to $2.16 billion. However, analysts were expecting earnings of $0.87 per share on revenue of $2.19 billion.
Reynolds American’s cost of products sold dropped 4% to $959 million.
RJR Tobacco’s adjusted operating income rose 5.4% y/y to $698 million, while American Snuff’s operating income climbed 0.1% to $110 million. Santa Fe’s operating income climbed 15.1% to $84 million.
“Reynolds American turned in an excellent second quarter, with higher earnings and margin reflecting continued strong performance by our reportable business segments,” said Susan M. Cameron, president and chief executive officer of RAI.
For the full year, the company now expects adjusted earnings of $3.35 to $3.45 per share, versus its earlier forecast of $3.30 to $3.45 per share.
Reynolds American shares fell 0.65% to $56.30 in pre-market trading.
