Reynolds American Inc. is scheduled to announce its second quarter earnings, here’s what you need to know…
EARNINGS FORECAST: Net income of 97 cents a share is the consensus of analysts surveyed by Thomson Reuters, compared with 92 cents reported a year earlier.
REVENUE FORECAST: Revenue of $2.44 billion is forecast, compared with $2.16 billion reported for the period a year earlier.
The company added Newport cigarettes to its portfolio in June after closing its $25 billion acquisition of Lorillard Inc. The menthol brand helped boost Reynolds’s cigarette sales 2.9% at retail in the four weeks ending June 11 according to Nielsen data cited by Wells Fargo. The company is yet to offer details on its marketing and promotional plans for the brand.
COST SAVINGS AND PRICING: Reynolds expected to cut about $800 million in costs through synergies following the Lorillard acquisition but some analysts expect it to save more. The company’s market share also increased by about 10% to an estimated 34% despite divesting four cigarette brands to Imperial Tobacco Group PLC. Analysts will be looking for updates on both costs and pricing plans for later this year.
VAPED-OUT: Reynolds rolled out its Vuse e-cigarette product nationally and have used heavy promotions to become the market leader in convenience stores and major retail outlets. But sales volume has slowed this year across the category. Can CEO Susan Cameron keep her promise that Vuse will be profitable by third quarter of this year? View full article