NEW YORK (TheStreet) -- Shares of Reynolds American (RAI) are higher by 1.91% to $80.70 in pre-market trading on Tuesday morning, after the tobacco producer reported better than expected earnings per share results for the 2015 second quarter.
Reynolds American posted adjusted earnings of $1.02 per share on $2.4 billion in net sales for the quarter ended June 2015.
Analysts polled by Thomson Reuters were expecting earnings of 97 cents per share for the latest quarter. However, the company's revenue results fell just shy of the $2.45 billion analysts were looking for.
The cigarette maker upped its full year 2015 adjusted earnings guidance to a range between $1.90 and $2 per share, an increase from the company's previous forecasts of $1.83 to $1.90 per share.
Reynolds American also announced its board has approved an increase to its dividend by 7.5% as well as 2-for-1 stock split.
"We have long demonstrated a deep commitment to returning value to our shareholders, and these latest actions reflect our confidence in the transformation agenda we've undertaken," company CEO Susan Cameron said in a statement.
Separately, TheStreet Ratings team rates REYNOLDS AMERICAN INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate REYNOLDS AMERICAN INC (RAI) a BUY. 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 revenue growth, notable return on equity, increase in net income, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
You can view the full analysis from the report here: RAI Ratings Report