) attained a new 52-week high of $50.94 on Oct 28 after it posted
impressive third quarter 2013 results last week. Shares of this
cigarette maker eventually closed at $50.54, reflecting a
year-to-date return of 30.6%.
The company's long-term estimated EPS growth rate is 102%.
Average volume of shares traded over the last three months came
in at approximately 2.800K.
Solid Third Quarter Results
On Oct 23, Lorillard reported its third quarter 2013 results,
beating the Zacks Consensus Estimate for both earnings and
revenue. Adjusted earnings of 83 cents per share surged 15.3%
from the prior-year quarter's earnings of 72 cents. The rising
market share of its brands, higher sales, lower share count owing
to share buyback activity, and continued success of its
electronic cigarette brand - blu eCigs - proved to be Lorillard's
strength in the third quarter of 2013. Lorillard acquired blu
eCigs electronic cigarette brand of U.S. in Apr 2012.
Net sales in the reported quarter went up 10.0% year over year
to $1.8 billion on the back of strong sales of electronic
cigarettes as well as regular cigarettes. Net sales of the
cigarette segment grew 7.1% owing to improved cigarette volume
and higher cigarette selling prices. The sales of electronic
cigarettes also grew driven by continued success of the blu eCigs
brand, which was supported by brand building initiatives like a
television advertising campaign and the launch of rechargeable
We are impressed with the company's strong dominance in the
cigarette industry owing to its strong brands and high market
share. It is quite well placed in the electronic cigarette
industry as smokers are shifting their preference to electronic
cigarettes due to rising health concerns. Following the blu eCigs
brand, the company expanded in the wide UK electronic cigarette
market with the acquisition of SKYCIG, a leading premium brand of
electronic cigarettes in the U.K. on Oct 1. We believe the SKYCIG
acquisition will further boost Lorillard's sales as the
e-cigarette segment is evolving rapidly.
Other Stocks to Consider
Other stocks in the consumer staples sector that are
performing equally well and are worth considering include
Chiquita Brands International Inc
Pinnacle Foods Inc
The J.M. Smucker Co. Inc.
), all of them with a Zacks Rank #2.
CHIQUITA BR INT (CQB): Free Stock Analysis
LORILLARD CO (LO): Free Stock Analysis Report
PINNACLE FOODS (PF): Free Stock Analysis
SMUCKER JM (SJM): Free Stock Analysis Report
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