Smokes Up: Altria, Reynolds, Philip Morris

NEW YORK (TheStreet) -- If there is a winner in the cigarette industry, Reynolds American(RAI Quote) is it.

The maker of Camel and Pall Mall cigarettes saw its profit surge 72% in its third quarter to $362 million, or $1.24 per share, compared with $211 million, or 72 cents, in the year-ago period. Analysts expected a profit of $1.17 a share.

Reynolds also lifted its full-year outlook in the range of $4.60 to $4.70 a share, up from prior forecast of $4.40 to $4.60 a share.

Not all was positive for Reynolds. Most of the company's quarterly gains were due to charges from trademark impairment and restructuring that dampened last year's results. In addition, revenue sank 5% to $2.15 billion from $2.27 billion last year, while the company said shipment volume slid 11%, compared to an industry decline of 12.6%.

The industry is, of course, closely watching cigarette volume figures from the third quarter, as the quarter marked the start of a 62-cent tax increase.

Meanwhile, although Reynolds was the clear standout in the sector, both Philip Morris International(PM Quote) and Altria(MO Quote) also upped their outlook in delivering their earnings in the past 24 hours.

Philip Morris International, for starters, announced that selling cigarettes overseas has been both a positive and negative. While the stronger dollar weighed down its third-quarter profit, the international demand for cigarettes isn't as weak as it is in the U.S.

Thus, despite both a decline in profit and sales, Philip Morris International raised its full-year outlook.

During the quarter, the company earned $1.79 billion, or 93 cents a share, down 14% from $2.08 million, or $1.01, in the year-ago period. Analysts expected profit of 91 cents a share.