Reynolds American Q4 Adj. Profit Matches View, Sees 2015 Earnings In Line

(RTTNews) - Reynolds American Inc. (RAI) reported that its fourth-quarter of 2014 net income declined to $148 million or $0.28 per share from $292 million or $0.54 per share in the year-ago period.

However, adjusted earnings for the latest-quarter were $0.87 per share, compared to $0.77 per share in the prior-year quarter. On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.87 per share for the quarter. Analysts' estimates typically exclude special items.

The company noted that the latest quarter's adjusted earnings reflect higher cigarette and moist-snuff pricing, as well as the completion of the federal tobacco-quota buyout. These more than offset lower cigarette volume and increased investment on the VUSE Digital Vapor Cigarette.

Net sales for the quarter grew 4.7 percent to $2.13 billion from $2.04 billion in the previous year. Wall Street expected revenues of $2.14 billion for the quarter.

For fiscal 2015, Reynolds American issued its outlook for adjusted earnings in a range of $3.65 to $3.80 per share, up 6.7 percent to 11.1 percent from adjusted earnings of $3.42 per share in 2014. Analysts expect the company to report earnings of $3.71 per share for the year.