Reynolds American, the parents company of cigarette brands such as Camel, Pall Mall, and Newport, is sinking in trading on Wednesday after the firm missed on earnings and announced its CEO is stepping down.
The tobacco company announced earnings of $0.61 per share against analyst expectations of $0.64. Revenue was also light at $3.21 billion versus analysts expectations of $3.31.
The firm also announced that its current CEO, Susan Cameron, will be leaving the role over the next year to be replaced by COO of RJ Reynolds, Debra Crew, the largest subsidiary of Reynolds American.
Following the news, the stock sold off as much as 7%, but had recovered to just a -5% drop as of 9:45 a.m. ET.