Earnings Preview: Reynolds American

| About: Reynolds American, (RAI)

Reynolds American (NYSE:RAI) is expected to report Q3 earnings before the open on Thursday, October 21 with a conference call scheduled for 10:30 am ET.


Analysts are looking for EPS of $1.34 on revenue of $2.20B. The consensus range is $1.30-$1.41 for EPS, and $2.16B-$2.23B for revenue, according to First Call. The company reported better-than-expected Q2 results, beating EPS and revenue estimates despite rising cigarette costs and smoking bans. One of its brands, Pall Mall, had seen its volume grow 9.7% in Q2 even as the company's overall volume fell 9.5%.

Analyst Views

According to SmarTrend, Reynolds American has performed the best of the major tabacco companies, trading at a new 52-week high on October 18. It was, however, downgraded to Hold from Buy at Deutsche Bank and to Neutral from Buy at Davenport. The company had also announced the retirement of CEO Susan Ivey, effective February 28, 2011.