Jefferies Cuts Estimates on Lorillard (LO) After Weak Q1, Keeps Buy Rating

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Jefferies lowered numbers on Lorillard (NYSE: LO) following "very disappointing" 1Q12 adj. EPS of $1.74, which missed their forecast by 32 cents. However, the firm remains positive and maintained their Buy rating and raised their price target from $139 to $144.

The firm comments, "LO offered very disappointing 1Q12 adj. EPS of $1.74, missing our forecast by 32¢. Incl. the effect of wholesale inventory shifts, the miss was only 16¢. In addition, margins were disappointing, partially due to one-time events. That being said, the underlying trends for LO remain strong, adj. volume and pricing were close to our expectations and the company continues to grow market share."

Q2 EPS goes from $2.33 to $2.32, FY12 EPS goes from $9.04 to $8.57 and FY13 from $9.91 to $9.47.

For an analyst ratings summary and ratings history on Lorillard click here. For more ratings news on Lorillard click here.

Shares of Lorillard closed at $129.53 yesterday, with a 52 week range of $96.50-$138.88.

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