Leading cigarette maker Reynolds American Inc. ( RAI ) delivered adjusted earnings of 72 cents per share in the first quarter of fiscal year 2013 that were ahead of Zacks Consensus Estimate of 69 cents by 4.3%. Earnings were up 14.3% from the prior-year quarter. Adjusted earnings per share exclude a 21 cents benefit from 2013 Master Settlement Agreement ( MSA ) payment credit and a 1 cent charge related to implementation costs. Earnings were on the upswing on the back of positive pricing and expense management business. Revenues and Operating Margin Reynolds' net sales in the reported quarter slipped 2.6% year over year to $1.8 billion due to declining cigarette volumes. Quarterly net sales also missed the Zacks Consensus Estimate of $1.9 billion. Governmental actions that prohibit the use of tobacco products, along with diminishing social acceptance of smoking, are adversely impacting Reynolds' cigarette volumes.