Reynolds American Q3 Profit Rises; Reaffirms 2014 Adj. EPS View - Quick Facts

(RTTNews) - Reynolds American Inc. (RAI) reported that its third-quarter of 2014 net income increased to $467 million from last year's $457 million, with earnings per share improving to $0.88, from $0.84 in the prior year.

Adjusted earnings per share for the latest-quarter was $0.95, up 10.5 percent from the prior-year quarter, as higher cigarette and moist-snuff pricing, and the ongoing benefit from the partial settlement of certain NPM Adjustment claims, more than offset lower cigarette volume and increased investment on the VUSE Digital Vapor Cigarette. Analysts polled by Thomson Reuters expected the company to report earnings of $0.91 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew to $2.240 billion from $2.135 billion in the previous year. Wall Street expected revenues of $2.19 billion for the quarter.

The company reaffirmed 2014 adjusted earnings per share guidance in the range of $3.35 to $3.45, up 5.0 percent to 8.2 percent from 2013's adjusted earnings per share of $3.19. Analysts project annual earnings per share of $3.38.