WINSTON SALEM, N.C. (AP) — Reynolds American reported a surge in second-quarter profit with cigarette prices and volume rising.
The nation's second-biggest tobacco company topped Wall Street profit expectations, boosted its profit guidance and dividend and announced a 2-for-1 stock split.
Net income more than tripled to $1.93 billion, or $3.38 per share.
Earnings, adjusted for non-recurring gains, came to $1.02 per share, which was still 8 cents better than analysts had expected, according to a poll by Zacks Investment Research .
The parent of Camel and Pall Mall cigarette maker R.J. Reynolds posted an 11.1 percent boost in revenue to $2.4 billion in the period. It recently closed on a $25 billion takeover of Newport seller Lorillard Inc..
Cigarette volumes rose 5.6 percent and the quarter included a hefty gain on a divestment that was part of the Lorillard deal.
The company now expects full-year earnings in the range of $1.90 to $2 per share, up from prior guidance of $1.83 to $1.90.
Reynolds is raising its dividend 7.5 percent to $1.44 annually after the stock split.
Shares of Reynolds American Inc., based in The Winston Salem, North Carolina, have increased 23 percent since the beginning of the year, while the Standard & Poor's 500 index has stayed nearly flat. The stock has climbed 39 percent in the last 12 months.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on RAI at http://www.zacks.com/ap/RAI
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