Reynolds American Q1 Adj. EPS Misses View - Quick Facts

(RTTNews) - Tobacco company Reynolds American, Inc.'s (RAI) first-quarter reported net income fell to $363 million, or $0.67 per share, from $508 million, or $0.92 per share, last year.

Excluding a gain from discontinued operations, charges for Engle progeny lawsuits and tobacco-related and other litigation, implementation costs, and other special items, quarterly adjusted earnings per share were $0.72, in line with last year, as cigarette volume declines, increased investment on the VUSE expansion, and the timing of certain sales and marketing expenses offset higher pricing and the impact of the share buyback program. On average, 9 analysts polled by Thomson Reuters expected earnings per share of $0.74 for the quarter. Analysts' estimates typically exclude one-time items.

For the tri-monthly period, net sales reached $1.935 billion, compared with $1.88 billion in the year-ago period, while seven analysts estimated revenues of $1.91 billion.