The company reported earnings per share, excluding items, of 82 cents, 4 cents less than the Capital IQ consensus estimate. Revenues increased 3.6% year-over-year to $1.25 billion, less than the consensus estimate of $1.31 billion.
Fourth quarter net sales increased 2.3% year over year to $1.743 billion and annual net sales increased 4.9% year over year to a record $6.95 billion. In the fourth quarter, cigarette net sales increased 1.4%, or $24 million, year over year to $1.689 billion from $1.665 billion.
"Lorillard delivered industry leading double digit EPS growth and its eleventh consecutive year of market share growth in 2013 while the Company concurrently made investments in electronic cigarettes, new cigarette products, and made process changes to smooth wholesale inventory fluctuations in the fourth quarter," said Chairman, President and CEO Murray S. Kessler in the company's statement. "These investments, combined with the remarkable strength and loyalty of the core Newport brand, give us confidence in our ability to deliver on our stated goal of a double digit total shareholder return as measured by EPS growth and the dividend yield once again in 2014 and for many years to come."
TheStreet Ratings team rates LORILLARD INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LORILLARD INC (LO) a BUY. This is driven by some important positives, 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 and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."