Guido MiethWe previously covered Altria (NYSE:MO) in February 2024, discussing why we had maintained our Buy rating then, with the stock consistently supported at the $40s. At the same time, investors only needed to be patient as the NJOY acquisition was likely to bear results by H2'24. Combined with the robust profitability and the management's sustained share repurchases, we believed that the tobacco company's dividends remained safe throughout the slow but sure transition. Since then, MO has already ...

For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Altria (MO) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Consumer Staples peers, we might be able to answer that question.Altria is one of 191 companies in the Consumer Staples group. The Consumer Staples group currently sits at #16 within the Zacks Sector Rank. The Zacks Sector Rank gauges the stre ...

tomazl/E+ via Getty Images A few months ago, we penned an article titled "British American Tobacco: 15%-24% Annualized Potential Upside From Now Until 2028". The main idea behind the article was that global regulatory concerns around tobacco products were overblown, and that British American Tobacco's stock (BTI) was significantly undervalued. With dividends, earnings growth, and multiple expansion, we thought the stock could see 15-24% annualized total returns for the coming years, well into the latter ...

Altria Group Inc. (MO) delivered first-quarter 2024 results, with the bottom line missing the Zacks Consensus Estimate and declining year over year. The top line also declined from the year-ago quarter’s reported figure. Though MO benefited from pricing power, soft cigarette shipment volumes continued to hurt. The company saw early momentum from NJOY.Quarter in DetailAdjusted earnings came in at $1.15 per share, which declined 2.5% year over year and came a penny below of the Zacks Consensus Estimate of $1. ...

PM ImagesAltria Group (NYSE:MO) has been a battleground stock for years. The bears have been winning as shares have declined by -15.76% over the past five years. This has caused the dividend yield to gradually increase as MO has increased the dividend payment on an annual basis while its share price deteriorated. One of the main bear cases is the decline in cigarette consumption, while investors such as myself look at the underlying fundamentals and significant value under the hood of MO. Thursday morni ...

Altria’s First-Quarter 2024 Earnings Conference Call April 25, 2024 ...

Financial Data and Key Metrics Changes - First quarter adjusted diluted earnings per share (EPS) declined by 2.5% compared to the previous year [20] - The company reaffirmed its full year adjusted diluted EPS guidance in the range of $5.05 to $5.17, representing a growth rate of 2% to 4.5% from a base of $4.95 in 2023 [19][20] - Adjusted operating companies income for the smokeable products segment was over $2.4 billion, with a net price realization of 8.5% [21] Business Line Data and Key Metrics Changes - The smokeable products segment reported a 10% decline in adjusted cigarette volumes, while industry volumes declined by an estimated 9% [22] - The oral tobacco products segment saw adjusted operating companies income grow by 4.6%, with adjusted OCI margins expanding by 0.2 percentage points to 69.5% [24] - NJOY's retail share of consumables grew by 4.3 share points in the quarter, up 0.6 share points sequentially [10] Market Data and Key Metrics Changes - The oral nicotine pouches category grew 13.8 share points year-over-year, now representing over 40% of the oral tobacco category [17] - The e-vapor category continued to grow, primarily driven by illicit disposable products [45] - The discount segment in the cigarette market grew by 0.8 share points, reflecting macroeconomic pressures on adult smokers [22] Company Strategy and Development Direction - The company is focused on maximizing profitability while making appropriate investments in both traditional and innovative tobacco products [33][62] - There is a commitment to addressing the challenges posed by illicit products through engagement with regulators and stakeholders [14][15] - The company plans to broaden awareness and grow brand affinity for NJOY through improved retail positioning and marketing campaigns [13] Management's Comments on Operating Environment and Future Outlook - Management noted that the economic strain on consumers is impacting discretionary spending, which is a concern for the tobacco market [34][69] - The company expressed confidence in its ability to manage costs and maintain profitability despite industry challenges [38] - Management highlighted the need for a more effective regulatory environment to combat illicit products and support harm reduction efforts [17][45] Other Important Information - The company sold a portion of its investment in ABI and expanded its share repurchase program to $3.4 billion [25] - Adjusted equity earnings from ABI were recorded at $165 million, down 8.3% [26] - The company paid approximately $1.7 billion in dividends and retired $1.1 billion of notes that came due in the first quarter [25] Q&A Session Summary Question: About the modest raise to full year guidance following the ABI share sale - Management expressed confidence in core businesses and flexibility to manage overall business and investments behind innovative products [31] Question: Sustainability of the strategy to maximize operating profit - Management affirmed the strategy is to maximize long-term profitability while making appropriate investments [33] Question: Drivers of increased controllable costs in smokeable products - Management explained that higher costs were due to accounting adjustments and inventory revaluation, which are expected to moderate [37][38] Question: Expectations for improved dollar profit growth in smokeable products - Management indicated confidence in margin growth and performance of the smokeable segment moving forward [40] Question: Concerns about price gaps and down trading pressures - Management acknowledged the challenges but emphasized the strength of the Marlboro brand and the effectiveness of their pricing strategy [42] Question: Industry volume decline impact on EPS outlook - Management stated they run various scenarios and feel confident about their guidance despite industry volume challenges [45] Question: Growth of the vapor category and its impact on cigarette volumes - Management noted that the e-vapor category is growing, primarily from illicit products, impacting cigarette volumes negatively [45] Question: Share performance in oral tobacco and strategy moving forward - Management emphasized the strategy to maximize profitability while investing in both Copenhagen and on! products [62]

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Altria (MO) came out with quarterly earnings of $1.15 per share, missing the Zacks Consensus Estimate of $1.16 per share. This compares to earnings of $1.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -0.86%. A quarter ago, it was expected that this owner of Philip Morris USA, the nation's largest cigarette maker would post earnings of $1.17 per share when it actually produced earnings of $1.18, delivering a surprise of 0. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-08940 Altria Group, Inc. (Exact name of registrant as specified in its charter) Virginia 13-3260245 (State or other jurisdiction o ...