Reynolds American Earnings Preview: Analyts Expect Higher Earnings, Revenue from Prior Quarter

It's time to get ready for Reynolds American RAI earnings! Don't be caught off-guard: The company releases its next round of earnings this Friday, July 22, 2011.

Wondering what Wall Street is thinking ahead of Reynolds American's lastest earnings numbers? Get the latest predictions in our essential guide to the company's second quarter earnings report.

Let's Do the Numbers:

Wall Street expects a positive EPS reading of 71 cents per share and revenues of $2.27 billion. We'll know on Friday whether Reynolds American has managed the estimated increase in EPS and revenue on a year-over-year basis.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter	Q1	Q4	Q3	Q2
EPS Estimate	$0.59	$0.61	$0.67	$0.65
EPS Actual	$0.59	$0.60	$0.68	$0.66

Stock Performance:

As of July 18, 2011, Reynolds American's current share price was $37.05. Shares are up 17% year to date.

Average Stock Rating:

The average rating by analysts for Reynolds American is a Moderate Buy. This rating has strengthened over the past three months.

Competitors:

Looking for a sympathy stock to trade or interested in the performance of other companies in the same sector? Take a look at some of Reynolds American's peers.

• Lorillard (LO): Hold with a $1.71 recent quarter EPS
• Altria Group (MO): Hold with a $0.44 recent quarter EPS
• Philip Morris International (PM): Moderate Buy with a $1.06 recent quarter EPS
• Universal (UVV): Hold with a $1.12 recent quarter EPS

Reynolds American is in the tobacco industry, which has experienced price/earnings growth of 1.6%.

Finally, a description of the main business areas of the company, in case you need a little refresher: Reynolds American manufactures cigarettes and other tobacco products in the United States.

Take Action:

Now that you're fully prepared, get ready to take quick action if the company reports any numbers significantly different from those listed above. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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