U.S. Markets closed

Reynolds American Tops Q2 Estimates Despite Cigarette Volume Decline


Reynolds American reported earnings on Tuesday that showed a profit increases of 6% despite a decline in the number of cigarettes sold. The adjusted earnings of 89 cents a share beat estimates by two cents while revenues of $2.16 billion fell short of last year's sales. Reynolds tightened its earnings projections for the year to between $3.35 and $3.45. However, the profit increase of 6.7% from the same period a year ago was in part due to increased prices but was also the result of some one-time gains in a partial settlement in an NPM adjustment claim and the impact of their share repurchase program. During this time, there were decreases in cigarette volume and increased investment in the VUSE e-cigarette expansion. Shares of Reynolds are up 13% for the year. Whalen MacHale reports for TheStreet from New York.