Tue, Oct. 27, 7:12 AM
- Reynolds American (NYSE:RAI) reported a 65% jump in non-GAAP operating income to $1.41B in Q3.
- Total domestic cigarette volumes were up 29.5% during the quarter as the addition of the Newport brand factored in. Retail market share +30 bps to 33.9%.
- Reynolds' operating margin improved 640 bps to 44.4%.
- The company ended the quarter with $2.9B in cash.
- Reynolds American earnings press release (.pdf)
- Previously: Reynolds American EPS in-line, beats on revenue (Oct. 27 2015)
- RAI +0.65% premarket to $49.84.
Tue, Jun. 16, 9:08 AM
- Goldman Sachs calls Reynolds American (NYSE:RAI) the "best in class" in the tobacco sector following the company's merger with Lorillard.
- Reynolds American lands on the Conviction Buy List at Goldman due to its upside potential after clearing the regulatory hurdles associated with the Lorillard integration.
- Despite being forced to shed some brands, Reynolds is seen having better pricing power due to its larger market share.
- GS assigns Reynolds a price target of $81 based off a blended assumption of 17.5X 12-24 month P/E and M&A EBITDA gains.
- RAI +1.0% premarket t0 $73.29.
Fri, Apr. 17, 7:30 AM
- Reynolds American (NYSE:RAI) reports cigarette volume fell 2.4% to 13.9B in Q1 vs. +0.5% industry average.
- Cigarette market share -50 bps to 26.1%.
- Premium mix +30 bps to 58.7%.
- SG&A expenses +23.73% Y/Y to $511M.
- Operating margin rate increased 280 bps to 37.2%.
- FY2015 Guidance: Adjusted EPS: $3.65 to $3.80.
- RAI +1.70% premarket.
Fri, Apr. 10, 10:22 AM
- Lorillard (LO +2%) and Reynolds American (RAI +2.4%) break higher on renewed chatter the FTC will decide against a lawsuit to halt the merger between the companies.
- Earlier today, Reynolds American announced it will host its earnings conference call on April 17 at which time more details on the merger and synergy estimates could be disclosed.
- Lorilalrd trades at an all-time high, while Reynolds American is only a dollar and change from a 52-week top.
Aug. 6, 2014, 10:00 AM
- Tobacco stocks are higher today in what analysts are calling a defensive move by investors.
- There's also been some stronger pricing trends on the lower-end of the cigarette market that has helped to boost the outlook on the group.
- Gainers: Philip Morris (PM +2.2%), Reynolds American (RAI +1.6%), Vector Group (VGR +1.4%), and Altrai (MO +1.9%).
Jul. 15, 2014, 10:53 AM
- Tobacco stocks slump as a group after Lorillard doesn't catch the premium in the Reynolds American buyout that some anticipated.
- Even Imperial Tobacco which ended up with the hot Blu e-cigarette brand as part of the deal is having trouble shaking off the pessimism.
- Decliners: Lorillard (NYSE:LO) -7.9%, Philip Morris (NYSE:PM) -1.3%, Altria (NYSE:MO) -2.1%, Vector Group (NYSE:VGR) -0.8%, Reynolds American (NYSE:RAI) -4.0%, Imperial Tobacco (OTCMKTS:ITYBY) -2.8%, British American Tobacco (NYSEMKT:BTI) -1.4%.
Jul. 11, 2014, 7:18 AM
- Shares of Lorillard (LO) are higher in early trading after Reynolds American (RAI) confirms an earlier report that it's in talks with the company over a buyout.
- Reynolds says British American Tobacco will support the transaction by subscribing additional shares.
- Imperial Tobacco (ITYBY) will snap up key brands to help make the deal more likely to sail past regulators.
- LO +4.6% premarket
Jul. 9, 2014, 8:16 AM| Jul. 9, 2014, 8:16 AM | 3 Comments
Jul. 3, 2014, 10:18 AM
- Shares of Lorillard (LO +4.6%) are higher after CNBC reports its sources indicate a merger of the company with Reynold American (RAI +1.6%) will be announced within weeks.
- In the deal sidecar: Imperial Tobacco (ITYBY) is expected to buy some assets in order to make the deal palatable for regulators, while British American Tobacco (BTI) is tapped to be part of the festivities as an investor in Reynolds.
Jun. 18, 2014, 9:02 AM
- Wells Fargo analyst Bonnie Herzog is fairly confident (90%) that a deal in which Reynolds American (RAI) pays up to $80 per share for Lorillard (LO) is still likely (CNBC interview video).
- Herzog thinks a combination of the two companies will "catapult" the e-cigarette business.
- LO +2.0% premarket to $63.01 giving investors plenty of upside still if the Wells call is correct.
Jun. 11, 2014, 8:17 AM
- Reynolds American (RAI) is upgraded by Bank of America to a Buy rating from Neutral.
- The investment firm gives shares a premium due to a potential merger of Reynolds with Lorillard.
- Favorable industry pricing trends in Q2 also set up well for Reynolds.
- RAI +0.2% premarket
May 22, 2014, 10:36 AM
- Shares of Lorillard (LO -5.5%) retreat after reality sets in that a deal for the company to be purchased by Reynolds American (RAI -1.8%) is complicated and could take some time to work out. The third wheel in the merger mix is British American Tobacco (BTI -0.9%) which owns 42% of Reynolds and could make a play for the whole company after a standstill agreement expires in July.
- Analysis is divided on if a deal will end up being completed at all. Stifel thinks regulators will jump in over the dominance in menthol a combination of the tobacco companies would create - while Wells Fargo's read is much more optimistic.
- Vector Group (VGR -1.6%) has been taken for a ride along with Lorillard and Reynolds, popping yesterday and deflating today.
Mar. 3, 2014, 3:13 PM
- Lorillard (LO +9.4%) is up sharply on volume 6X normal trading activity after a report that Reynolds American (RAI +5%) will make a bid for the company spurs buying activity.
- Financial Times reports that if a deal for the tobacco company is struck it would for a value of over $20B, although some inside sources indicate Reynolds might peel off some of the assets in its bid.
- Wells Fargo thinks a fair takeout price for Lorillard as a whole would be much higher than $60.
- What to watch: Analysts think an acquisition of Lorillard would allow Reynolds to make a stronger move into the growing e-cigarette market. Reynolds plans to launch Vuse later this year, but Lorillard's Blu brand is already a force.
Mar. 3, 2014, 11:09 AM
Oct. 22, 2013, 8:24 AM
Jul. 23, 2013, 1:31 PMWeakness in Reynolds America (RAI -2.3%), Altria (MO -2.6%), and Lorillard (LO -4.3%) following FDA guidance on the dangers of menthol cigarettes is likely a buying opportunity Wells Fargo says. The language used by the FDA is "somewhat softer than the menthol language from TPSAC's recommendation," analyst Bonnie Herzog notes, adding that this suggests "a ban is very unlikely." Asked about the report on this morning's call, MO CEO Martin Barrington said: "I heard about the headline when I walked into the room and was focused on the call, so I haven't looked at any of this." (Also: MO earnings, CC transcript) | Jul. 23, 2013, 1:31 PM | 3 Comments
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