Reynolds American (NYSE: RAI) reported earnings on Oct. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Reynolds American missed estimates on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share expanded significantly.

Margins expanded across the board.

Revenue details
Reynolds American notched revenue of $2.12 billion. The seven analysts polled by S&P Capital IQ wanted to see a top line of $2.18 billion on the same basis. GAAP reported sales were 3.8% lower than the prior-year quarter's $2.20 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.79. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.79 per share. GAAP EPS of $0.74 for Q3 were 17% higher than the prior-year quarter's $0.63 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 48.9%, 110 basis points better than the prior-year quarter. Operating margin was 34.0%, 350 basis points better than the prior-year quarter. Net margin was 19.8%, 310 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.10 billion. On the bottom line, the average EPS estimate is $0.75.

Next year's average estimate for revenue is $8.38 billion. The average EPS estimate is $2.96.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 596 members out of 646 rating the stock outperform, and 50 members rating it underperform. Among 208 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 196 give Reynolds American a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Reynolds American is hold, with an average price target of $44.91.

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