Analysts were expecting Lorillard, Inc. (LO) [Chart - News - Analysis] to report earnings of $1.52 for last quarter, but LO missed expectations with actual earnings of $1.44---8 cents below the consensus estimate.

If you compare last quarter's earnings to the $1.38 the company made per share during the same quarter a year ago, you can see that LO’s earnings are up this year.

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Also, if you compare LO's 8.00% projected earnings-per-share (EPS) growth rate for the next five years with the projected EPS growth rate of 9.09% for the Cigarettes industry as a whole during that same time frame, you can see that analysts expect LO to underperform the industry in the future---which is a bad sign for the stock.

Drilling down a little deeper into the Cigarettes industry, you can see how analysts believe LO will stack up against some of the other stocks in the industry, like Altria Group Inc. (MO) [Chart - News - Analysis] and British American Tobacco plc (BTI) [Chart - News - Analysis], in the future. Analysts believe MO's earnings are going to grow at a rate of 8.33% while BTI's earnings are going to grow at a rate of 8.98%.

Earnings season can be a volatile time in the stock market. Check out these videos and articles to be better prepared to take advantage of the large price moves that tend to accompany earnings announcements.

- Earnings Season is Here - Find Out How to Trade It

- Using Options to Trade Earnings

- Understanding Stock Analyst Research and Recommendations

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