Reynolds American Beats Analyst Estimates on EPS
Reynolds American (NYS: RAI) reported earnings on July 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Reynolds American missed estimates on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share increased significantly.
Margins increased across the board.
Reynolds American booked revenue of $2.18 billion. The seven analysts polled by S&P Capital IQ expected sales of $2.24 billion on the same basis. GAAP reported sales were 4.0% lower than the prior-year quarter's $2.27 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.79. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.76 per share. GAAP EPS of $0.78 for Q2 were 50% higher than the prior-year quarter's $0.52 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 48.9%, 250 basis points better than the prior-year quarter. Operating margin was 33.7%, 770 basis points better than the prior-year quarter. Net margin was 20.4%, 700 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.17 billion. On the bottom line, the average EPS estimate is $0.79.
Next year's average estimate for revenue is $8.34 billion. The average EPS estimate is $2.96.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 602 members out of 650 rating the stock outperform, and 48 members rating it underperform. Among 218 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 209 give Reynolds American a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Reynolds American is hold, with an average price target of $42.27.
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The article Reynolds American Beats Analyst Estimates on EPS originally appeared on Fool.com.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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