Altria earnings fall short amid lower cigarette sales and competition for nicotine products

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]