Lorillard Beats Analyst Estimates on EPS
Lorillard (NYS: LO) reported earnings on Feb. 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Lorillard beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased significantly.
Margins contracted across the board.
Lorillard logged revenue of $1.13 billion. The five analysts polled by S&P Capital IQ hoped for a top line of $1.09 billion. GAAP sales were 59% higher than the prior-year quarter's $1.02 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $2.20. The nine earnings estimates compiled by S&P Capital IQ anticipated $1.95 per share on the same basis. GAAP EPS of $2.32 for Q4 were 33% higher than the prior-year quarter's $1.74 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.4%, 1,330 basis points worse than the prior-year quarter. Operating margin was 32.8%, 2,100 basis points worse than the prior-year quarter. Net margin was 19.2%, 620 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.11 billion. On the bottom line, the average EPS estimate is $1.94.
Next year's average estimate for revenue is $4.97 billion. The average EPS estimate is $8.55.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 353 members out of 372 rating the stock outperform, and 19 members rating it underperform. Among 144 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 138 give Lorillard a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lorillard is outperform, with an average price target of $120.00.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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