NEW YORK, NY / ACCESSWIRE / May 4, 2017 / Leading tobacco companies Philip Morris and Reynolds American both fell short on Q1 earnings and have not been able to woo investors back since. Both companies continued to fall into the red on Wednesday.

RDI Initiates Coverage on:

Reynolds American Inc.
https://ub.rdinvesting.com/news/?ticker=RAI

Philip Morris International Inc.
https://ub.rdinvesting.com/news/?ticker=PM

Reynolds American Inc. shares fell 0.62% yesterday after dismal first quarter earnings results. For Q1 the company delivered worse than expected results on both the top and bottom line. The only bright side was that the tobacco company saw an increase in a year-over-year basis. Earnings per share came in at 56 cents, failing to meet the 57 cents that analysts had expected. Revenues at $2.95 billion also didn't line up with the expectations of $3.04 billion in sales. Investors are eagerly waiting for Reynolds to close its merger with British American Tobacco PLC. Reynolds expects the merger to close sometime in the third quarter after receiving U.S. and Japanese anti-trust approvals. Despite the loss yesterday, shares of RAI are up over 30% in the last twelve months. Since the start of the year, share prices have climbed roughly 15%. The company has been investing and focusing on alternative smoking products.

Access RDI?s Reynolds American Research Report at:
https://ub.rdinvesting.com/news/?ticker=RAI

Philip Morris International Inc. shares closed in the green on Wednesday, up a modest 0.13%. Since its Q1 earnings report late last month, the stock has struggled to gain back investor confidence. The stock saw a 3.4% fall after its report and have barely rebounded. The global leading tobacco company that makes Marlboro, posted adjusted earnings of $0.98 per share. Analysts had been looking for $1.03 per share. Revenue came in at $6.06 billion, which was also short of the $6.47 billion that analysts had estimated. The company is eagerly awaiting to see if the FDA approves its iQOS heated tobacco technology which it has spent $3 billion in research and development on. FDA approval would allow the company to commercialize iQOS within the U.S. market.

Access RDI?s Philip Morris Research Report at:
https://ub.rdinvesting.com/news/?ticker=PM

Our Actionable Research on Reynolds American Inc. (NYSE: RAI) and Philip Morris International Inc. (NYSE: PM) can be downloaded free of charge at Research Driven Investing.

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SOURCE: RDInvesting.com