Reynolds American Earns 70 Cents Per Share

Reynolds American ($RAI) just posted Q3 earnings of 70 cents per share which was three cents below estimates. The company also narrowed its full-year EPS range to $2.63 – $2.68 per share which impies a Q4 range of 67 – 72 cents per share.

Reynolds has also raised its quarterly dividend from 53 cents per share to 56 cents per share. That makes the annual dividend $2.24 per share which comes to a yield of 5.69% based on yesterday’s close.

“Reynolds American continues to deliver solid financial results in this challenging environment, while our transformation strategy shapes the business for long-term success,” said Daniel M. Delen, RAI’s president and chief executive officer. “This performance once again demonstrates our ability to overcome near-term challenges while continuing to position our business for future growth.”

RAI’s board of directors has also approved a 5.7 percent increase in the company’s dividend, demonstrating confidence in the operating companies’ businesses going forward, and the company’s commitment to returning value to shareholders.

Third-quarter results benefited from growth-brand gains at R.J. Reynolds, and strong volume and share growth at American Snuff. In addition, Santa Fe Natural Tobacco Company, Inc. again delivered excellent results, with higher volumes, share and earnings.

“Even with a difficult economic and competitive environment, RAI and its operating companies remain focused on delivering sustainable growth, while driving innovations throughout our businesses,” Delen said. “As we continue to focus on key-brand equity building and identifying additional opportunities for growth, we believe our transformation strategy will sustain the company well into the future.

Posted by on October 25th, 2011 at 8:09 am

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