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Core Insights - Altria Group's stock price fell over 5% following significant market share losses in the cigarette sector [1] Market Performance - Altria's domestic cigarette shipment volumes decreased by 7.9% in Q4, reflecting a continued decline in smoking rates in the U.S. [2] - The retail market share of Altria's Marlboro brand dropped to 39.8%, a year-over-year decline of 1.5 percentage points [2] Product Segments - Altria's oral tobacco products also experienced a decline, with shipment volumes falling by 6.3% due to market share losses [3] - The on! brand's share in the nicotine pouch category decreased by 5.3 percentage points to 13.4% [3] Financial Performance - Altria's revenues, net of excise taxes, slightly declined by less than 1% to $5.1 billion, with price increases offsetting lower shipment volumes [4] - Adjusted earnings per share remained flat at $1.30, supported by stock buybacks [4] - Management projects a growth in full-year adjusted earnings of 2.5% to 5.5% in 2026, estimating a range of $5.56 to $5.72 per share, aided by cost-cutting measures [4]

Core Insights - Altria Group Inc. reported fourth-quarter 2025 results with top-line revenue exceeding estimates but declining year over year, while bottom-line earnings missed expectations and remained flat compared to the previous year [1] Financial Performance - Adjusted earnings per share (EPS) for the fourth quarter were $1.30, flat year over year, and below the Zacks Consensus Estimate of $1.31, influenced by a lower adjusted tax rate and reduced share count, offset by lower adjusted operating companies' income (OCI) [2] - Net revenues totaled $5,846 million, a decline of 2.1% year over year, primarily due to decreased revenues in the smokeable products segment, although it surpassed the consensus estimate of $5,002 million [3] Segment Analysis - **Smokeable Products**: Net revenues fell 2.7% year over year to $5,119 million, driven by reduced shipment volume and increased promotional investments, partially offset by higher pricing. Revenues net of excise taxes decreased 1.1% [4] - Domestic cigarette shipment volumes dropped 7.9%, attributed to industry decline and trade inventory movements, while cigar shipment volumes increased by 4.2% [5] - Adjusted OCI in this segment decreased 2.4% to $2,643 million, impacted by reduced shipment volume and higher costs, with adjusted OCI margins falling 0.8 percentage points to 60.4% [6] - **Oral Tobacco Products**: Net revenues increased 2% to $706 million, driven by higher pricing, although shipment volumes declined by 6.3% due to retail share losses and trade inventory movements [7][8] - Adjusted OCI in this segment decreased 4.6%, influenced by elevated SG&A costs and a decline in shipment volumes, with adjusted OCI margins decreasing 5 percentage points to 64.5% [9] Capital Management - Altria ended the quarter with cash and cash equivalents of $4,474 million and long-term debt of $24,140 million, alongside a total stockholders' deficit of $3,502 million [10] - In Q4 2025, the company repurchased 4.8 million shares for $288 million, and for the full year, it repurchased 17.1 million shares totaling $1 billion, with $1 billion remaining under the share repurchase program [11] Future Outlook - For 2026, Altria expects adjusted EPS in the range of $5.56 to $5.72, indicating year-over-year growth of 2.5% to 5.5% from a base of $5.42 in 2025, with growth anticipated to be weighted towards the second half of the year [12] - The company projects an adjusted effective tax rate of 22.5% to 23.5%, capital expenditures of $300-$375 million, and depreciation and amortization expenses of approximately $225 million [13]

Core Insights - Altria reported revenue of $5.08 billion for the quarter ended December 2025, showing a year-over-year decline of 0.5% and an EPS of $1.30, slightly up from $1.29 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $5 billion, resulting in a surprise of +1.54%, while the EPS fell short of the consensus estimate of $1.32, leading to a surprise of -1.13% [1] Financial Performance Metrics - Revenue from Oral Tobacco Products was $682 million, surpassing the estimated $673.99 million, reflecting a year-over-year increase of +2.9% [4] - Revenue from Smokeable Products was $4.38 billion, exceeding the average estimate of $4.29 billion, but showing a year-over-year decline of -1.1% [4] - Adjusted Operating Companies Income (OCI) for Smokeable Products was reported at $2.64 billion, slightly below the average estimate of $2.67 billion [4] - Reported OCI for Oral Tobacco Products was $438 million, compared to the average estimate of $466.35 million from two analysts [4] Stock Performance - Altria's shares have returned +9.5% over the past month, outperforming the Zacks S&P 500 composite, which saw a change of +0.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Altria's shares declined after reporting flat earnings due to falling cigarette sales and increased competition from unauthorized disposable e-cigarettes [1][3] Financial Performance - Altria's fourth-quarter revenue decreased by 2% to $5.8 billion, primarily due to lower cigarette sales [2] - The adjusted net income was reported at $1.30 per share, which was below Wall Street's expectations of $1.32 per share [3] Market Dynamics - The company faces challenges from unauthorized disposable e-cigarettes that are cheaper and available in various flavors, impacting traditional cigarette sales [2] - Altria's on! pouches market share fell to approximately 13%, down about 5 percentage points from the previous year [5] Competitive Landscape - The U.S. pouch market is led by Zyn from Philip Morris International, which holds over two-thirds of the market share [6] - Altria is experiencing pricing competition from Philip Morris, including promotional sales for Zyn [6] Strategic Initiatives - Altria is working on diversifying its business into next-generation products like e-cigarettes and nicotine pouches, although it is not a market leader in these areas [4] - The company plans to implement pricing strategies and introductory promotions as it expands its nicotine pouches nationally later this year [6][7]

Financial Data and Key Metrics Changes - In 2025, adjusted diluted earnings per share grew by 4.4% and the company returned $8 billion to shareholders through dividends and share repurchases combined [4] - The smokable product segment delivered over $11 billion in adjusted operating income (OCI) for the full year, expanding adjusted OCI margins by 1.8 percentage points to 63.4% [18] - For the fourth quarter, adjusted OCI declined by 2.4%, and adjusted OCI margins contracted by 0.8 percentage points to 60.4% [18] Business Line Data and Key Metrics Changes - Domestic cigarette volumes declined by 7.9% in the fourth quarter and 10% for the full year [18] - The oral tobacco product segment retail share was 29.6% for the fourth quarter and 31.9% for the full year [23] - Total segment reported shipment volume decreased 6.3% for the fourth quarter and 5.5% for the full year [22] Market Data and Key Metrics Changes - The estimated number of adult consumers in the e-vapor and oral tobacco categories grew to almost 30 million, reflecting the potential for tobacco harm reduction in the U.S. [7] - The e-vapor category grew approximately 15% in 2025, with illicit products representing approximately 70% of the category [8] - The nicotine pouch category drove overall oral tobacco volume growth, which increased an estimated 14% over the past six months [10] Company Strategy and Development Direction - The company is focused on advancing its smoke-free portfolio and building a portfolio of FDA-authorized smoke-free products for adult smokers [16] - Strategic collaborations, such as with KT&G, aim to enhance international modern oral and U.S. non-nicotine growth [5] - The company plans to maintain a measured approach to investments in e-vapor until the regulatory framework is functioning effectively [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the growth in disposable vapers moderated in 2025 compared to the prior year, indicating a potential stabilization in the market [9] - The company expects to deliver 2026 full year adjusted diluted EPS in a range of $5.56-$5.72, reflecting a growth rate of 2.5%-5.5% from a $5.42 base in 2025 [16] - Management expressed confidence in the company's strategy and the opportunities ahead, emphasizing the importance of responsible participation in the e-vapor category [17] Other Important Information - The company recorded non-cash impairment charges of $1.3 billion related to e-vapor definite-lived intangible assets and goodwill [23] - The company paid $7 billion in dividends in 2025, marking its 60th increase in the last 56 years [25] - The total debt-to-EBITDA ratio as of December 31 was 2x, in line with the company's target [25] Q&A Session Summary Question: Can you provide any color on the scope of the import/export program? - Management indicated that the program involves both upfront investments and the opportunity for duty drawback, setting up manufacturing capabilities for international markets [32] Question: Is the elevated CapEx associated with the investments for import/export? - Management confirmed that the primary driver of the increase in CapEx is the investments for the import/export business, but they did not provide guidance for future CapEx [34] Question: How is the promotional strategy behind Basic affecting net price realization? - Management clarified that the strategy around Basic is independent of the duty drawback and is aimed at capturing consumers under economic pressure [41] Question: Are there any signs of increased smoking incidence among younger legal-aged nicotine users? - Management stated that there are no trends indicating increased incidence among younger cohorts, emphasizing the need for expedited authorization of smoke-free products [52] Question: What is the pricing strategy for on! PLUS? - Management believes that on! PLUS is a differentiated product that commands a premium in the marketplace, with various introductory price promotions planned [53]

Financial Data and Key Metrics Changes - In 2025, adjusted diluted earnings per share grew by 4.4% and the company returned $8 billion to shareholders through dividends and share repurchases combined [4] - The smokable product segment delivered over $11 billion in adjusted operating income (OCI) for the full year, expanding adjusted OCI margins by 1.8 percentage points to 63.4% [18] - For the fourth quarter, adjusted OCI declined by 2.4%, and adjusted OCI margins contracted by 0.8 percentage points to 60.4% [18] Business Line Data and Key Metrics Changes - Domestic cigarette volumes declined by 7.9% in the fourth quarter and 10% for the full year [18] - The oral tobacco product segment reported a shipment volume decrease of 6.3% for the fourth quarter and 5.5% for the full year [22] - Nicotine pouches drove overall oral tobacco volume growth, which increased an estimated 14% over the past six months [10] Market Data and Key Metrics Changes - The estimated number of adult consumers in the e-vapor and oral tobacco categories grew to almost 30 million, reflecting the potential for tobacco harm reduction in the U.S. [7] - The e-vapor category grew approximately 15% in 2025, with illicit products representing approximately 70% of the category [8] - The nicotine pouch category saw a retail share of 29.6% for the fourth quarter and 31.9% for the full year [23] Company Strategy and Development Direction - The company is focused on advancing its smoke-free portfolio and building a portfolio of FDA-authorized smoke-free products for adult smokers [16] - Strategic collaborations, such as with KT&G, aim to enhance international modern oral and U.S. non-nicotine growth [5] - The company plans to maintain a measured approach to investments in e-vapor until the regulatory framework is functioning effectively [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the growth in disposable vapers moderated in 2025, with a 10% increase compared to over 40% in 2024 [9] - The company expects to deliver 2026 full year adjusted diluted EPS in a range of $5.56-$5.72, representing a growth rate of 2.5%-5.5% from a $5.42 base in 2025 [16] - Management expressed confidence in the company's strategy and the opportunities ahead, emphasizing the importance of responsible participation in the e-vapor category [17] Other Important Information - The company recorded non-cash impairment charges of $1.3 billion related to e-vapor definite-lived intangible assets and goodwill [23] - The company paid $7 billion in dividends in 2025, marking its 60th increase in the last 56 years [25] - The total debt-to-EBITDA ratio as of December 31 was 2x, in line with the company's target [25] Q&A Session Summary Question: Can you provide any color on the scope of the import/export program? - Management indicated that the program involves both upfront investments and opportunities for duty drawback, setting up manufacturing capabilities for international markets [32] Question: Is the increase in CapEx a one-time increase or a multiyear higher level? - Management confirmed that the increase is primarily driven by investments for the import/export business, but future CapEx guidance was not provided [34] Question: How is the promotional strategy behind Basic affecting net price realization? - Management clarified that the strategy for Basic is independent of the duty drawback and is aimed at capturing consumers under economic pressure [41] Question: What is the strategy for Marlboro given the drop in retail share? - Management emphasized the importance of maximizing profitability while making appropriate investments in Marlboro and growth categories [46] Question: Are there any trends in smoking incidence among younger legal-aged nicotine users? - Management noted that there are no significant trends observed in the data regarding increased smoking incidence among younger cohorts [52] Question: What is the pricing strategy for on! PLUS? - Management believes on! PLUS is a differentiated product that commands a premium in the marketplace, with various introductory price promotions planned [53]

Financial Data and Key Metrics Changes - In 2025, adjusted diluted earnings per share grew by 4.4% and the company returned $8 billion to shareholders through dividends and share repurchases combined [4][24] - The smokable product segment delivered over $11 billion in adjusted operating income (OCI) for the full year, expanding adjusted OCI margins by 1.8 percentage points to 63.4% [16] - For the fourth quarter, adjusted OCI declined by 2.4%, and adjusted OCI margins contracted by 0.8 percentage points to 60.4% [16] Business Line Data and Key Metrics Changes - Domestic cigarette volumes declined by 7.9% in the fourth quarter and 10% for the full year [16] - The oral tobacco product segment retail share was 29.6% for the fourth quarter and 31.9% for the full year [21] - Total segment reported shipment volume decreased 6.3% for the fourth quarter and 5.5% for the full year [21] Market Data and Key Metrics Changes - The estimated number of adult consumers in the e-vapor and oral tobacco categories grew to almost 30 million, reflecting the potential for tobacco harm reduction in the U.S. [6] - The e-vapor category grew approximately 15% in 2025, with illicit products representing approximately 70% of the category [7][8] - The nicotine pouch category grew an estimated 14% over the past six months, with oral nicotine pouches now representing nearly 57% of the total oral category [9] Company Strategy and Development Direction - The company is focused on advancing its smoke-free portfolio and building new pathways for long-term growth in international modern oral and non-nicotine innovations [15] - Strategic investments in retail merchandising and product innovation are planned to support the national launch of on! PLUS in 2026 [12] - The company intends to maintain a measured approach to investments in e-vapor until the regulatory framework is functioning effectively [9] Management's Comments on Operating Environment and Future Outlook - Management noted that the primary driver of industry and smoke-free growth continues to be the widespread availability of illicit flavored, disposable e-vapor products [6] - The company expects to deliver 2026 full year adjusted diluted EPS in a range of $5.56-$5.72, representing a growth rate of 2.5%-5.5% from a $5.42 base in 2025 [14] - Management expressed confidence in the company's strategy and the opportunities ahead, emphasizing the importance of responsible participation in the e-vapor category [15] Other Important Information - The company recorded non-cash impairment charges of $1.3 billion related to e-vapor definite-lived intangible assets and goodwill [22] - The company paid $7 billion in dividends in 2025, marking its 60th increase in the last 56 years [24] Q&A Session Summary Question: Can you provide any color on the scope of the import/export program? - Management indicated that the program involves both upfront investments and the opportunity for duty drawback, setting up manufacturing capabilities for international markets [31] Question: Is the elevated CapEx associated with the investments for import/export a one-time increase? - Management confirmed that the primary driver of the increase is the investments for the import/export business, but they are not guiding for future CapEx [33] Question: How is the promotional strategy behind Basic affecting net price realization? - Management clarified that the strategy around Basic is independent of the duty drawback and is aimed at capturing consumers under economic pressure [40] Question: Are there any signs of increased smoking incidence among younger legal-aged nicotine users? - Management stated that there are no trends indicating increased smoking incidence among younger cohorts, emphasizing the need for expedited product authorizations [50] Question: What is the pricing strategy for on! PLUS? - Management believes on! PLUS is a differentiated product that commands a premium in the marketplace, with various introductory price promotions planned [51]

Core Insights - Dividend stocks are favored by investors, particularly Boomers and older Gen X, due to their ability to provide steady passive income and total return potential [1][2] - Total return includes interest, capital gains, dividends, and distributions, exemplified by a stock purchased at $20 with a 3% dividend yielding a total return of 13% when the price rises to $22 [1] - Anticipation of two rate cuts in 2026 suggests that investors should consider high-yield dividend stocks now [1] Dividend Stocks Overview - Since 1926, dividends have contributed approximately 32% to the S&P 500's total return, with capital appreciation accounting for 68% [4] - A study indicates that dividend stocks delivered an annualized return of 9.18% from 1973 to 2023, significantly outperforming non-payers at 3.95% [4] Featured Companies - **Altria Group Inc.**: Offers a 7.30% dividend yield and is a major player in the tobacco industry, selling primarily through wholesalers [5][6] - **Apple Hospitality REIT Inc.**: Owns a large portfolio of upscale hotels, providing an 8.10% monthly dividend [9][10] - **Energy Transfer L.P.**: A leading midstream energy company with a 7.97% distribution, owning over 114,000 miles of pipelines [11][12] - **Healthpeak Properties Inc.**: Focuses on healthcare real estate with a 7.56% dividend, managing properties across various healthcare segments [17][18] - **Verizon Communications Inc.**: A telecommunications giant with a 6.71% dividend, showing strong financial metrics and consistent dividend growth over 20 years [19][20]

Core Insights - Altria reported quarterly earnings of $1.3 per share, missing the Zacks Consensus Estimate of $1.32 per share, but showing an increase from $1.29 per share a year ago [1][2] - The company posted revenues of $5.08 billion for the quarter, surpassing the Zacks Consensus Estimate by 1.54%, although this represents a slight decline from $5.11 billion in the previous year [3] Earnings Performance - The earnings surprise for the quarter was -1.13%, contrasting with a positive surprise of +0.69% in the previous quarter [2] - Over the last four quarters, Altria has exceeded consensus EPS estimates three times [2] Stock Performance - Altria shares have increased approximately 9.5% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.24 on revenues of $4.51 billion, and for the current fiscal year, it is $5.58 on revenues of $20 billion [8] - The outlook for the tobacco industry is currently weak, with the industry ranking in the bottom 32% of over 250 Zacks industries, which may impact Altria's stock performance [9]