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NEW YORK (TheStreet) -- Reynolds American (RAI) shares are showing volatility in early market trading on Friday despite releasing financial results before the opening bell today that topped analysts' first quarter earnings expectations.

The Camel and Pall Mall parent company said that increased cigarette prices helped its bottom line during the period, with the company reporting a 7.2% increase in net income to $389 million from $363 million during the same quarter last year. The company earned 86 cents per share during the period, ahead of the 67 cents per share it earned a year earlier, and better than the 79 cent per share analyst consensus.

Revenues for the period increased 6.3% over the previous year to $2.06 billion, topping analysts' forecast of $1.98 billion in revenue.

Despite the strong quarter, Reynolds American shares were in negative territory earlier today but they are currently up 0.16% to $74.36.

TheStreet Ratings team rates REYNOLDS AMERICAN INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate REYNOLDS AMERICAN INC (RAI) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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