(By Balaseshan) Tobacco company Reynolds American Inc. (NYSE: RAI) reported a 10.4 percent growth in quarterly earnings, in line Wall Street projections, on higher pricing, productivity improvements, and the impact of the share repurchase program.
Following the news, shares gained 1.13 percent in premarket
Adjusted earnings per share (EPS) for the third quarter grew 6.8 percent to 79 cents from 74 cents, in line with market expectations. On a reported basis, EPS jumped 10.4 percent to 74 cents.
Net sales declined 3.8 percent to $2.12 billion, missing consensus estimate of $2.20 billion.
Adjusted operating margin improved 2.0 percentage points to 36.1 percent.
Cigarette shipment volume at the company's segment RJR Tobacco, which makes Camels, declined 6.9 percent. Camel volume fell 8.0 percent, while Pall Mall volume rose 1 percent.
Looking ahead for the full year, the company still expects adjusted EPS in the range of $2.91 to $3.01, up 3.6 percent to 7.1 percent, while analysts expect $2.95.
RAI shares, which have been trading between $37.68 and $46.93 over the past year, closed Monday's regular trading at $42.52.