Reynolds American (RAI) is expected to report Q2 earnings before market open Wednesday, July 30, with a conference call scheduled for 9:30 a.m. ET.
Analysts are looking for a profit of $1.18 on revenue of $2.31B. The consensus is $1.10 to $1.24 for EPS, and revenue of $2.27B to $2.37B, according to First Call. Reynolds gave FY08 guidance when it reported its Q4 results in February, forecasting mid-single-digit EPS growth in FY08 and over the next several years.
Lehman Brothers, which has a Neutral rating on Reynolds, said it sees "slight" revenue growth and a -5.3% volume decline for the quarter. Earlier in July, Morgan Stanley upgraded Reynolds to Equal Weight from Underweight based on valuation.