Lorillard (NYSE: LO) announced its results for the third quarter on October 24, 2011. Let's take a closer look at the company's industry, financials, and commentary and see what steps you can take next.
Earnings and Revenue:
Lorillard posted revenues above analyst predictions, though the company's EPS came up short of expectations. The company reported EPS of $1.94/share versus the $2.04/share estimate and revenues of $1.62 billion versus the $1.14 billion estimate. EPS rose 7.2% while revenue climbed 3.5% from the same period last year.
With last quarter's falling profit, the company ends a run of four consecutive quarters of year-over-year profit increases. Lorillard's revenue has grown during each of the past four quarters on a year-over-year basis.
Income:
For the year, Lorillard reported net income of $7.44/share. The company trumped analyst projections of $7.33 by 1.5%. According to the reported number, the company's income fell 2.6% from last year's levels.
Conference Call:
The conference call for third quarter earnings can be accessed here.
Official Comment:
"Lorillard fundamentals remained extremely strong in the third quarter, although as we expected shipments were negatively affected by changes in wholesale inventory patterns versus last year. Wholesale shipments of Lorillard products to retail, which are unaffected by changes in wholesale inventory, increased over 8% versus year ago. And, the Company achieved significant market share gains in all market categories and all sales regions," said Murray S. Kessler, Chairman, President and Chief Executive Officer. "Continued strong fundamentals combined with normalized wholesale inventories bode well for a strong fourth quarter finish to an already outstanding 2011."
Industry:
With price/earnings growth of 1.7%, Lorillard's industry, tobacco, is expanding.
What to Do Next:
Now you're all set to decide what to do with those Lorillard shares until the next earnings announcement. Whether you buy, sell, or hold, check back with us before the company's next earnings release for a full preview.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
