UPDATE: Reynolds American Posts Stronger-Than-Expected Q4 Earnings

Reynolds American (NYSE: RAI) reported a 54% drop in its fourth-quarter earnings. Reynolds American expects full-year adjusted earnings of $3.15 to $3.30 per share, versus analysts' estimates of $3.12 per share. Reynolds American's quarterly profit fell to $139 million, or $0.25 per share, from $304 million, or $0.52 per share, in the year-ago period. Excluding special items, its adjusted earnings came in at $0.76 per share. Its sales rose 0.2% to $2.08 billion. However, analysts were expecting earnings of $0.73 per share on revenue of $2.06 billion. Its operating margin declined to 13.2% from 24.8%. Reynolds American shares closed at $44.22 yesterday.