Lorillard Earnings: Net Income Keeps Falling
S&P 500 (NYSE:SPY) component Lorillard Inc. (NYSE:LO) reported its results for the second quarter. Lorillard manufactures and sells cigarettes and tobacco under the brand names of Newport, Kent, True, Maverick, and Old Gold.
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Lorillard Inc. Earnings Cheat Sheet
Results: Net income for Lorillard Inc. fell to $284 million ($2.17 per share) vs. $291 million ($2.05 per share) a year earlier. This is a decline of 2.4% from the year-earlier quarter.
Revenue: Rose 2.3% to $1.73 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Lorillard Inc. reported adjusted net income of $2.19 per share. By that measure, the company fell short of mean estimate of $2.32 per share. It beat the average revenue estimate of $1.25 billion.
Quoting Management: “In a quarter that saw significant competitive activity, Lorillard grew sales and market share without sacrificing gross margin,” said Murray S. Kessler, Chairman, CEO & President. “With strong second half plans in place and a more favorable inventory position, the company reaffirms its 2012 goal of a double digit total shareholder return as measured by EPS growth and the dividend yield.”
The company’s net income has fallen in each of the last two quarters. In the first quarter, net income fell 10.1% from the year-earlier quarter.
The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by 25 cents with net income of $1.74 versus a mean estimate of net income of $1.99 per share.
Over the last five quarters, revenue has increased 5.1% on average year-over-year. The biggest increase came in the second quarter of the last fiscal year, when revenue rose 11.3% from the year-earlier quarter.
Looking Forward: The average estimate for the third quarter remains unchanged at $2.25 a share. For the fiscal year, the average estimate has moved down from $8.95 a share to $8.72 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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