UPDATE: Lorillard Posts In-Line Q4 Earnings, Sales Rise

Lorillard Inc. LO reported in-line earnings for the fourth quarter. The Greensboro, North Carolina-based company posted quarterly earnings of $327 million, or $0.91 per share, compared to $281 million, or $0.76 per share, in the year-ago peirod. Excluding items, the company earned $0.93 per share. Its sales climbed 1.4% to $1.77 billion, while revenue excluding excise taxes climbed 2.4% to $1.28 billion. However, analysts were expecting earnings of $0.93 per share on revenue of $1.29 billion. The company's cigarette sales rose 2.4% to $1.729 billion in the quarter, while sales in the e-cigarette business shrank 28% to $39 million Reported operating income for the Cigarettes segment rose 21.4%, to $612 million in the quarter, while adjusted operating income for the segment climbed 16.0%, to $610 million. "Lorillard finished the year in impressive fashion, delivering strong fourth quarter financial and operating results, marked by continued robust cigarette pricing realization, the 12th consecutive year of market share gains and tight cost controls – resulting in 13% adjusted earnings per share growth in the quarter and almost 8% in the full year. Once again, Lorillard shareholders were rewarded with another year of double-digit total shareholder returns as measured by EPS growth and the dividend yield," said Murray S. Kessler, Lorillard Chairman, President and CEO. Lorillard shares rose 1.62% to close at $67.07 yesterday.