Core Insights - Altria reported Q4 results with revenues of $5.11 billion and adjusted earnings of $1.29 per share, slightly exceeding street estimates of $5.05 billion and $1.28 respectively [1][3][4] - The company experienced a 1.6% year-over-year revenue growth, driven by increasing sales of oral tobacco products, while smokeable products volume declined by 8.6% [3][4] - The outlook for 2025 adjusted earnings is $5.30, below the consensus estimate of $5.35, with concerns about the rise of illicit vaping products impacting business [5][8] Financial Performance - Altria's adjusted operating margin improved by 220 basis points for smokeable products and 640 basis points for oral tobacco products in Q4 [4] - The adjusted earnings reflected a 9.3% year-over-year change, indicating a positive trend despite low single-digit sales growth [4] Market Position - Altria's stock has returned 41% since the beginning of 2024, outperforming the S&P 500 index, which is up 27% [2][6] - The stock has shown volatility over the past four years, with returns of 24% in 2021, 4% in 2022, -4% in 2023, and 41% in 2024 [6] Competitive Landscape - Illicit vaping products now account for 60% of the vaping products market, creating challenges for Altria's compliant businesses [5] - The current stock price of $52 reflects a P/E ratio of 10.2x trailing earnings, slightly above the average P/E ratio of 9.5x over the last five years [8]

Which of these consumer staples giants is a more reliable investment?Altria (MO 1.19%) and Kraft Heinz (KHC -1.88%) are blue chip consumer staples giants that for a time were parts of the same company. Altria, the domestic tobacco giant formerly known as Philip Morris USA, bought Kraft Foods in the 1980s and owned it until its spin-off in 2007. In 2015, Kraft Foods merged with H.J. Heinz to become Kraft Heinz.Over the past 10 years, Altria's stock price dipped by 2%. But when factoring in reinvested dividen ...

Group 1 - The focus is on growth and dividend income as a strategy for retirement planning [1] - The portfolio is structured to generate monthly dividend income that grows through reinvestment and annual increases [1] Group 2 - The article expresses personal opinions and is not intended as investment advice [2] - It emphasizes the importance of conducting individual research before making investment decisions [2]

On January 30th, the management team at tobacco behemoth Altria Group, Inc. (NYSE: MO ) announced financial results for the final quarter of the company's 2024 fiscal year. In addition to exceeding analysts’ expectations onCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash flow analy ...

Americans are not as confident of the economy as they were a few months back. Markets have been volatile from the beginning of this year as inflation has been showing signs of climbing again, prompting the Federal Reserve to adopt a cautious approach and pause its rate cut campaign.Donald Trump’s victory in the U.S. Presidential election was seen as a major positive for both the economy and markets, sending stocks on a rally in the final months of 2024. However, the enthusiasm has faded this year as continu ...

Core Insights - Altria Group reported fourth-quarter results that slightly exceeded expectations, with growth in smoke-free product segments [2][5] Financial Performance - Adjusted EPS for Q4 2024 was $1.29, surpassing analysts' estimate of $1.28, and reflecting a 9.3% increase from Q4 2023's $1.18 [3] - Revenues for Q4 2024 reached $5.11 billion, exceeding the forecast of $5.05 billion by approximately 1%, but showing a year-over-year decrease of 1.9% to $5.974 billion [2][5] - The adjusted OCI margin improved to 61.2%, up 220 basis points from 59.0% in Q4 2023 [3] - The adjusted tax rate decreased to 24.1%, down 50 basis points from 24.6% in Q4 2023 [3] Business Overview - Altria is a major player in the tobacco industry, known for its Marlboro brand, and is shifting focus towards smoke-free alternatives like nicotine pouches and e-vapor products [4] - The company is adapting to changing consumer preferences and regulatory pressures while strengthening its position in emerging markets [4] Segment Performance - Sales of core smokeable products remained stable, with revenues dipping only 0.2%, managed through price increases [5] - Oral tobacco products saw a 2.7% rise in net revenues, driven by a 44.4% increase in shipment volumes for on! nicotine pouches [6] - The NJOY segment experienced a 15.3% increase in consumables' shipment volume, despite legal challenges [6] Strategic Initiatives - Management announced a new $1 billion share repurchase program, indicating confidence in cash flows, while maintaining regular dividends [6] - Altria is forecasting adjusted EPS growth of 2% to 5% for 2025, reflecting optimism amid regulatory and market challenges [7] Future Outlook - Investors should monitor Altria's regulatory dealings, particularly regarding safety evaluations for its NJOY product, as the company's long-term prospects depend on effective smoke-free strategy deployment and product diversification [8]

Core Insights - Altria Group Inc. reported fourth-quarter 2024 results with earnings and revenues exceeding Zacks Consensus Estimates, showcasing year-over-year earnings growth while net revenues remained stable compared to the previous year [1][2][3] Financial Performance - Adjusted earnings per share (EPS) for the fourth quarter were $1.29, reflecting a 9.3% increase year over year, surpassing the Zacks Consensus Estimate of $1.27 [2] - Net revenues totaled $5,974 million, nearly unchanged from the prior year, with a 1.6% increase in revenues net of excise taxes to $5,106 million, exceeding the consensus estimate of $5,049.7 million [3] Segment Analysis - **Smokeable Products**: Net revenues decreased by 0.2% year over year to $5,263 million, impacted by reduced shipment volumes and increased promotional investments, although higher pricing provided some offset. Revenues net of excise taxes rose by 1.7% [4][6] - Domestic cigarette shipment volumes fell by 8.8%, attributed to industry decline and retail share losses, while cigar shipment volumes increased by 2.9% [5] - Adjusted operating income (OCI) in this segment increased by 5.5% to $2,709 million, with adjusted OCI margins growing by 2.2 percentage points to 61.2% [6] - **Oral Tobacco Products**: Net revenues rose by 2.7% to $692 million, driven by higher pricing, despite a slight decrease in domestic shipment volumes by 0.4% [7][8] - Adjusted OCI for this segment increased by 13% to $461 million, with adjusted OCI margins expanding by 6.4 percentage points to 69.5% [8] Shareholder Returns and Future Outlook - The company completed a $3.4 billion share repurchase program, repurchasing 5.8 million shares for $310 million in the fourth quarter, and authorized a new $1 billion share repurchase program expected to be completed by December 31, 2025 [9][10] - Altria paid dividends totaling $1.7 billion in the fourth quarter and $6.8 billion for the entire year [10] - For 2025, the company anticipates adjusted EPS in the range of $5.22 to $5.37, indicating a growth of 2-5% from the $5.12 reported in 2024 [12]

Core Insights - The primary goal of the Cash Flow Kingdom Income Portfolio is to achieve an overall yield in the range of 7% to 10% by combining various income streams to create a steady portfolio payout [1] - Altria Group, Inc. reported quarterly earnings that exceeded estimates, driven by strong growth from its product on! [1] Company Performance - Altria Group, Inc. beat earnings estimates on both revenue and earnings per share, indicating robust financial performance [1] - The company’s income stream remains consistent despite fluctuations in the portfolio's price [1] Investment Strategy - The Cash Flow Kingdom Income Portfolio focuses on generating attractive and steady income through diverse income sources [1] - The portfolio includes features such as access to a leader's personal income portfolio targeting yields over 6%, community chat, and a "Best Opportunities" list [1]

Core Viewpoint - Altria's stock declined due to disappointing guidance for 2025, with shares down 4.2% following the announcement [1] Financial Performance - Revenue for the quarter was flat at $5.97 billion, but excluding excise taxes, it increased by 1.6% to $5.11 billion, surpassing estimates of $5.05 billion [2] - Adjusted earnings per share rose by 9.3% to $1.29, aligning closely with analyst consensus of $1.28 [4] Market Dynamics - Cigarette sales continued to decline, with volumes dropping 8.8% to 16.6 billion sticks, and Marlboro's market share decreased by one percentage point to 41.3% [2] - The oral nicotine pouch product, on!, saw strong growth, reaching 43.9 million cans, although it was insufficient to boost the overall oral tobacco category [3] Future Outlook - Management's guidance for adjusted earnings per share growth of 2% to 5% (projected at $5.22 to $5.37) fell short of the analyst consensus of $5.35, contributing to the stock's decline [4] - CEO Billy Gifford emphasized 2024 as a pivotal year for the company, highlighting the potential for solid income growth and margin expansion from core tobacco businesses [4] Challenges - The company faces significant challenges, including competition from both legal and illegal vapes, as well as regulatory threats to the tobacco industry [5] - Despite a safe dividend yield of nearly 8%, weak earnings growth could jeopardize the company's ability to maintain dividend growth [5]

Core Insights - Altria reported revenue of $5.11 billion for the quarter ended December 2024, reflecting a 1.6% increase year-over-year and a surprise of +1.12% over the Zacks Consensus Estimate of $5.05 billion [1] - The company's EPS for the quarter was $1.29, up from $1.18 in the same quarter last year, surpassing the consensus estimate of $1.27 by +1.57% [1] Revenue Breakdown - Net revenue from Oral tobacco products was $663 million, exceeding the average estimate of $646.04 million, with a year-over-year increase of +2.5% [4] - Revenue from Smokeable Products reached $4.42 billion, slightly above the estimated $4.36 billion, marking a +1.7% change compared to the previous year [4] - Net revenue from All Other/Financial Services was reported at $19 million, which is a significant decline of -29.6% year-over-year, surpassing the average estimate of $17.50 million [4] Operating Income - Operating income for Oral tobacco products was $453 million, slightly above the average estimate of $446.59 million [4] - Adjusted operating income for Smokeable Products was reported at $2.71 billion, just below the estimated $2.72 billion [4] - The operating loss for All Other/Financial Services was -$123 million, worse than the average estimate of -$92 million [4] Stock Performance - Altria's shares have returned +0.7% over the past month, compared to a +1.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]