The maker of cigarette brands Camel and Kool reported strong Q3 earnings and revenue growth as higher prices offset a drop in number of cigarettes sold. Reynolds American (RAI), which in July announced plans to buy Lorillard (LO) for $25 bil, said Q3 earnings grew 11% to 95 cents per share on a 4.7% hike in revenue to $2.24 bil. Wall Street expected 91 cents EPS on $2.19 bil revenue. The company shipped 3% fewer cigarettes in Q3, worse than the industry-average 2.3% drop. Shares rose 3.2% to 61.03.