While revenue fell, Reynolds American (NYSE:RAI) saw a rise in its net income.
Earnings and Revenue The company posted an EPS above analyst expectations, though revenues fell short of predictions. The company reported adjusted net income of 79 cents a share versus the 76 cents a share estimate and revenues of $2.18 billion versus the $2.25 billion estimate.
For the second quarter, the company reported profit of $443 million. This is 35.5% higher than the year-ago quarter. Revenue fell 4% from $2.27 billion in the same period last year.
Company Fundamental Trends Revenue declined last quarter after shrinking 2.9% to $1.93 billion in the first quarter.
History Against Expectations The company topped expectations last quarter after falling short of forecasts in the first quarter. It reported net income of 63 cents versus a mean estimate of net income of 65 cents per share.
Official Comment: "RAI increased earnings and margin in the second quarter as our operating companies successfully navigated an intensely competitive environment," said Daniel M. Delen, president and chief executive officer. "This performance rounded out a solid first half, and keeps us on track for full-year earnings growth in the mid- to high-single digits."
Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.