Lorillard Earnings Preview: Analysts Expect Higher EPS, Revenue

Lorillard LO announces its next round of earnings this Monday, October 24, 2011. Here's Benzinga's essential guide to Lorillard's third quarter earnings report.

Earnings and Revenue:

Wall Street expects an EPS of $2.04/share and revenues of $1.14 billion. Lorillard's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of $1.81/share on revenues of $1.07 billion. We'll have to wait for Monday to see if Lorillard falls in line with analyst expectations and reports an estimated increase in both EPS and revenue from the year-ago quarter.

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

Quarter	Q2	Q1	Q4	Q3
EPS Estimate	$2.02	$1.57	$1.67	$1.64
EPS Actual	$2.05	$1.71	$1.74	$1.81

Stock Performance:

As of October 18, 2011, Lorillard's current share price was $111.64. Since January 1st, shares of Lorillard have given investors a return of 41.5%. For a full 12 months, the return has risen by 45.6%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Lorillard is a Hold. Over the past three months this rating's strength has declined slightly.

Competitors:

Wondering how Lorillard compares to rivals in the same sector? Here are a few of the company's peers.

• Alliance One International AOI: Moderate Buy with a $0.03 recent quarter EPS
• Altria Group MO: Hold with a $0.53 recent quarter EPS
• Star Scientific CIGX: -$0.04 recent quarter EPS

The tobacco company's industry has seen price/earnings growth of 1.7% during the current fiscal year.

Finally, a description of the company's main areas of operation: Lorillard manufactures and sells cigarettes and tobacco under the brand names of Newport, Kent, True, Maverick, and Old Gold.

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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