Reynolds American Earns 63 Cents Per Share

Reynolds American ($RAI) reported first-quarter earnings of 63 cents per share, which was two cents below estimates. Quarterly revenues fell 2.9% to $1.93 billion which was below the revenue estimate of $1.97 billion.

I said in CWS Market Review:

I’m not so concerned if the company beats or misses by a few pennies per share. The important thing to watch for is any change in the full-year forecast of $2.91 to $3.01 per share. If Reynolds stays on track to meet its forecast, I think we can expect the tobacco company to bump up the quarterly dividend from 56 cents to 60 cents per share.

Reynolds reiterated its full-year guidance of $2.91 to $3.01 which is the most important thing.

Posted by on April 24th, 2012 at 10:00 am

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