UPDATE: Lorillard Posts Rise In Q3 Profit

Lorillard LO reported a rise in its earnings for the third quarter. The Greensboro, North Carolina-based company posted quarterly earnings of $289 million, or $0.80 per share, compared to $258 million, or $0.69 per share, in the year-ago period. Excluding items, the company's earnings increased to $0.90 per share from $0.83 per share. Its sales gained to $1.83 billion in the quarter, while sales, excluding excise taxes, were $1.32 billion. However, analysts were expecting a profit of $0.90 per share on revenue of $1.33 billion. Cigarette net sales rose 1.6% to $1.793 billion in the quarter, while its e-cigarette business posted a 40% drop in sales to $38 million. Lorillard's cigarette shipments slipped 2.1% in the quarter. Total Lorillard retail market share of cigarettes rose 0.3 share points to 15.1% in the quarter. Gross profit increased to $699 million from $654 million. "Lorillard delivered strong third quarter financial and operating results including robust Cigarettes segment adjusted operating profit and profit margin growth, continued cigarette market share gains as well as a sequential increase in blu eCigs domestic net sales despite heavy competitive e-cig discounting," said Murray S. Kessler, Lorillard Chairman, President and CEO. Lorillard's shares closed at $60.52 yesterday.