Reynolds American Inc. missed second-quarter revenue and earnings expectations and announced a $2.0 billion share buyback program Tuesday morning. Earnings for the latest quarter rose to $796 million, or 56 cents per share, from $1.93 billion, or $1.69 cents per share in the year-earlier period, which the company attributed primarily to the gain on divestiture related to its acquisition of Lorillard Inc. last year. Adjusted earnings-per-share were 58 cents, compared with the FactSet consensus of 61 cents. Revenue rose to $3.2 billion from $2.4 billion, below the FactSet consensus of $3.3 billion. For 2016, the company narrowed its adjusted EPS guidance to $2.26 to $2.34, compared with the FactSet consensus of $2.35. RAI shares slumped 0.6% in pre-market trade. The company's shares rose 8.3% over the last three months, compared with a 3.7% rise in the S&P 500 .
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