MO Q4 Earnings Beat Estimates on Pricing Despite Low Cigarette Volumes

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]