Lorillard Inc. Stock Buy Recommendation Reiterated (LO)
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- LO's revenue growth has slightly outpaced the industry average of 4.2%. Since the same quarter one year prior, revenues slightly increased by 4.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- LORILLARD INC has improved earnings per share by 11.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LORILLARD INC increased its bottom line by earning $2.67 versus $2.26 in the prior year. This year, the market expects an improvement in earnings ($2.80 versus $2.67).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Tobacco industry average. The net income increased by 6.0% when compared to the same quarter one year prior, going from $267.00 million to $283.00 million.
- Net operating cash flow has increased to $578.00 million or 34.73% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -7.39%.
- The gross profit margin for LORILLARD INC is rather high; currently it is at 52.70%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 24.31% trails the industry average.
--Written by a member of TheStreet Ratings Staff. It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE
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