Reynolds American (RAI) Stock Falls Ahead of Q2 Earnings
NEW YORK (TheStreet) -- Shares of Reynolds American (RAI) are decreasing 0.37% to $52.10 on Monday as the Winston-Salem, NC-based tobacco giant expects to post second quarter earnings before tomorrow's opening bell.
Analysts are expecting Reynolds American to report earnings of 61 cents per share on sales of $3.26 billion.
Last year, the company reported earnings of $1.02 per share on $2.4 billion in sales for the quarter.
In June, Reynolds won a lawsuit filed in the U.S. Supreme Court by European Union countries alleging the company was overseeing a money-laundering system related to drug smuggling in Europe. The case against Reynolds American's subsidiary R.J. Reynolds was sent back to the lower courts for additional proceedings.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate REYNOLDS AMERICAN INC as a Buy with a ratings score of A+. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, expanding profit margins, good cash flow from operations and compelling growth in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: RAI
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