Reynolds American Beats Profit, Sales Estimates

Tobacco company Reynolds American Inc. said it had net income of $389 million, or 73 cents a share, in the first quarter, up from $363 million, or 67 cents a share, in the year-earlier period. Excluding special items, the company had adjusted EPS of 86 cents, above the FactSet consensus of 80 cents. Sales rose to $2.06 billion from $1.94 billion, also ahead of the FactSet consensus of $1.98 billion. The company said higher cigarette and moist-snuff pricing and the completion of the federal tobacco-quota buyout boosted earnings. The company said it still expects full-year EPS of $3.65 to $3.80, compared with the FactSet consensus of $3.79. Shares were not yet active in premarket trade, but are up 15.5% in the year so far, while the S&P 500 has gained 2.2%.