UPDATE: Reynolds American (RAI) Reports In-Line Q4 EPS; Guides FY15 EPS

(Updated - February 10, 2015 7:26 AM EST)

Reynolds American (NYSE: RAI) reported Q4 EPS of $0.87, in-line with the analyst estimate of $0.87. Sales were $2.13 billion, flat with consensus estimates.

"Reynolds American continued to deliver growth momentum in the fourth quarter, capping a highly successful year for our operating companies core operations and key brands, said Susan M. Cameron, president and chief executive officer of RAI. "This strong performance contributed to RAI's excellent total shareholder return of just under 35 percent for 2014. In addition, Cameron said, substantial progress was made in RAI's transforming tobacco strategy. "Our companies innovative new products across categories are enhancing prospects for commercial success in an evolving marketplace, while also underscoring our commitment to reducing the harm caused by tobacco," she said.

Developments include:

• The national expansion of R.J. Reynolds Vapor Company's VUSE Digital Vapor Cigarette and the addition of four more adult-oriented styles;
• The start of the national expansion of Niconovum USA's ZONNIC nicotinereplacement therapy gum; and,
• R.J. Reynolds Tobacco Company's launch of REVO in Wisconsin, which uses heat-not-burn technology.

Late last month, RAI and Lorillard shareholders approved RAI's proposed acquisition of Lorillard, Inc. and divestiture of select brands and assets to a subsidiary of Imperial Tobacco Group PLC. "We have also substantially complied with the Federal Trade Commission's second request for information, and the process of obtaining the necessary regulatory and other approvals continues to proceed as expected, Cameron said. "We remain confident that the transaction will close in the first half of this year.

Following the year s achievements, RAI projects 2015 adjusted earnings growth of 6.7 percent to 11.1 percent. "Our companies are performing extremely well, and we re focused on an exciting year ahead, Cameron said.

Reynolds American sees FY2015 EPS of $3.65 - $3.80, versus the consensus of $3.74.

For earnings history and earnings-related data on Reynolds American (RAI) click here.

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