Company Watch – Lorillard Inc. (NYSE:LO)

[Triad Business Journal] Lorillard Inc. (NYSE:LO) decline in electronic cigarette sales over the past two quarters raises “questions and concerns about the strength of the nascent market,” according to Zacks Investment Research. Greensboro-based Lorillard (NYSE:LO) saw e-cigarette sales fall nearly 40 percent to $38 million in the third quarter, which ended Sept. 30. To view the full article click here.

Lorillard Inc. (NYSE:LO), On 10/23/2014, LO reported 3 quarter 2014 earnings of $0.90 per share. This result was in-line with the consensus of the 8 analysts following the company and beat last year’s 3 quarter results by 8.43%. The next tentative earnings announcement is expected on 02/10/2015. LO’s PE ratio is in-line with the Tobacco industry average and implies that investors do not see anything special about this company’s prospects.

Lorillard Inc. (LO)‘s PE ratio is among the lowest of any stock in the Semiconductors industry and signals that investors have not been willing to pay a premium for this company’s business prospects. Additionally, during the past year, earnings growth has outpaced its historical five year growth rate.

In terms of ratings, there are eight analysts that cover the stock which have provided Q4 2014 earnings per share estimates. The consensus anticipated number for the upcoming quarter is $0.92. The highest estimate is $0.94 while the lowest is $0.89. The company has a one year EPS growth rate of 12.11% and a five year EPS growth rate of 12.90%.

Lorillard Inc. (LO) through its subsidiaries, is engaged in the manufacture and sale of cigarettes and electronic cigarettes. The Company has two segments: Cigarettes and Electronic Cigarettes. The Cigarettes segment consists principally of the operations of Lorillard Tobacco Company and related entities. The Electronic Cigarettes segment consists of the operations of LOEC, Inc. (doing business as blu eCigs), and Cygnet UK Trading Limited (trading as SKYCIG) and related entities. Newport, the Company’s flagship premium cigarette brand, includes both menthol and non-menthol product offerings. In addition to the Newport brand, its product line has four additional brand families marketed under the Kent, True, Maverick, and Old Gold brand names. These five brands include 43 different product offerings, which vary in price, taste, flavor, length and packaging. Lorillard markets electronic cigarettes under the blu eCigs and SKYCIG brands.