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Call to the Floor: Lorillard

The Fast gang suggests keeping a close eye on Lorillard after the company reported a stronger than expected profit due to increased sales of cigarettes at higher prices.

By comparison, rivals Reynolds American and Altria Group both reported selling fewer cigarettes in the quarter.

In fact, Lorillard's market share increased 1.2 points during the quarter to 13.2 percent of the U.S. market.

The weak economy and high unemployment may actually be a good thing for Lorillard. Tough times have caused many smokers to trade down to cheaper brands with Lorillard's Maverick brand benefiting from the trend.

Looking at the numbers, the maker of Newport, Maverick and True cigarettes said it earned $259 million, or $1.74 per share, for the period ended Dec. 31, compared with $242 million, or $1.52 per share, a year earlier. The per share result was boosted by a lower number of shares outstanding.

The nation's third-biggest tobacco company said revenue excluding excise taxes increased more than 9 percent to $1.02 billion.

Analysts expected Lorillard to earn $1.68 per share on revenue of $920.4 million, according to FactSet.

How should you place your bets?

Don’t make a move until you check out our exclusive interview with Lorillard CEO Murray S. Kessler. Watch the video now!





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Trader disclosure: On Feb 7, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns (AA); Seymour owns (AAPL); Seymour owns (BAC); Seymour owns (F); Seymour owns (FXI); Seymour owns (GE); Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Adami's wife works for (MRK); Karabell owns (VALE), (CSCO), (FCX), (BRCM), (IBM), (GOOG), (AAPL), (RIMM), (GS), (C), (FXI), (AOL); Pete Najarian owns (BAC) call spreads; Pete Najarian owns (CNI); Pete Najarian owns (C); Pete Najarian owns (F) calls and bonds; Pete Najarian owns (GE); Pete Najarian owns (GM); Pete Najarian owns (JPM) call spreads; Pete Najarian owns (MS); Pete Najarian owns (PEP); Pete Najarian owns (TCK); Pete Najarian owns (V) call spreads; Pete Najarian owns (VZ) calls; Pete Najarian owns (YHOO)

For Brian Kelly
Accounts Managed by Kanundrum Capital Own (ATW)
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Accounts Managed by Kanundrum Capital Own (EBAY)
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Accounts Managed by Kanundrum Capital Own (DRYS)
Accounts Managed by Kanundrum Capital Own (JEF)
Accounts Managed by Kanundrum Capital Own The U.S. Dollar
Accounts Managed by Kanundrum Capital Are Short the Australian Dollar
Accounts Managed by Kanundrum Capital Are Short The Yen

For Zachary Karabell
River Twice Capital is short (SPY)
River Twice Capital is short (ELF)
River Twice Capital is short (XLI)
River Twice Capital is short (SMH)
River Twice Capital owns (BRCM)
River Twice Capital owns (CSCO)
River Twice Capital owns (IBM)
River Twice Capital owns (MSFT)
River Twice Capital owns (GS)
River Twice Capital own (VALE)

For Dennis Gartman
Funds Managed by Dennis Gartman are long Canadian Dollars
Funds Managed by Dennis Gartman are long Australian Dollars
Funds Managed by Dennis Gartman are long Gold
Funds Managed by Dennis Gartman are long Wheat
Funds Managed by Dennis Gartman are long Corn
Funds Managed by Dennis Gartman are long Soybeans
Funds Managed by Dennis Gartman are long Sugar
Funds Managed by Dennis Gartman are long Crude
Funds Managed by Dennis Gartman are long Nat Gas
Funds Managed by Dennis Gartman are short The Euro
Funds Managed by Dennis Gartman are short The Sterling
Funds Managed by Dennis Gartman are short The Yen

For Pete Najarian SOT
Pete Najarian owned (PEP) on 2/4/2011

For David Bank
RBC Capital Markets is currently providing (DIS) with non-securities services
RBC Capital Markets has provided (DIS) with non-securities services in the past 12 months

For Todd Gordon
Aspen Trading Group is long the Sterling vs. the Australian Dollar for clients

For Fast Fire
Pete Najarian owned

(NKE) call spreads on 12/20/2010

For Mike Khouw
No disclosures on (RL)

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