Reynolds American Q3 Adj. Profit Meets Estimates, Tightens FY15 EPS View

(RTTNews) - Reynolds American Inc. (RAI) Tuesday reported 4.5 percent increase in third quarter earnings per share from the previous year. On an adjusted basis, earnings per share was in line with estimates. The company tightened its projection for full year adjusted earnings.

For the third-quarter, the company reported, the company recorded 40.7 percent increase in net income to $657 million from $467 million last year. On an adjusted basis, earnings were $781 million. On a per share basis, earnings grew 4.5 percent to $0.46 from $0.44 last year. Adjusted earnings were $0.55 per share. On average, 9 analysts polled by Thomson Reuters expected the company to earn $0.55 per share. Analysts estimates usually exclude special items.

Revenue for the quarter climbed 41.1 percent to $3.161 billion from $2.240 billion in the previous year. Wall Street expected revenue of $3.15 billion.

Looking ahead, the company tightened its full year adjusted earnings per share range to $1.94 to $2.00, while its previous outlook was in a range of $1.90 to $2.00 per share. The Street estimates is $1.99 per share on revenue of $10.60 billion.

RAI finished Monday's regular trading on NYSE at $49.49.