Altria Group, Inc. (NYSE:MO) Earnings Preview: A Look at the Upcoming Quarterly Report

Altria Group (NYSE:MO) delivered first-quarter earnings and revenue that surpassed analyst expectations, sending its shares up more than 1% intra-day today.

The company posted adjusted earnings of $1.23 per share, beating Wall Street’s estimate of $1.19. Revenue came in at $5.26 billion, ahead of the $4.62 billion consensus.

Despite the earnings beat, Altria reaffirmed its full-year 2025 EPS guidance of $5.30 to $5.45, which aligns closely with the $5.33 analysts had been expecting. The forecast implies modest 2% to 5% growth over 2024, reflecting a cautious stance amid broader industry headwinds.

In its core smokeable products segment, net revenue declined 5.8% year-over-year to $4.62 billion, as cigarette shipment volumes dropped 13.7%. The company cited overall industry contraction and retail share losses as the main drivers of the decline, even as its Marlboro brand continued to perform relatively well in terms of profitability.

Meanwhile, the oral tobacco products division provided a rare bright spot, with revenue rising 0.5% to $654 million. Its on! nicotine pouches maintained strong momentum, posting an 18% increase in shipment volumes.

Altria Group (NYSE:MO) delivered first-quarter earnings and revenue that surpassed analyst expectations, sending its shares up more than 1% intra-day today.

The company posted adjusted earnings of $1.23 per share, beating Wall Street’s estimate of $1.19. Revenue came in at $5.26 billion, ahead of the $4.62 billion consensus.

Despite the earnings beat, Altria reaffirmed its full-year 2025 EPS guidance of $5.30 to $5.45, which aligns closely with the $5.33 analysts had been expecting. The forecast implies modest 2% to 5% growth over 2024, reflecting a cautious stance amid broader industry headwinds.

In its core smokeable products segment, net revenue declined 5.8% year-over-year to $4.62 billion, as cigarette shipment volumes dropped 13.7%. The company cited overall industry contraction and retail share losses as the main drivers of the decline, even as its Marlboro brand continued to perform relatively well in terms of profitability.

Meanwhile, the oral tobacco products division provided a rare bright spot, with revenue rising 0.5% to $654 million. Its on! nicotine pouches maintained strong momentum, posting an 18% increase in shipment volumes.

• Altria Group, Inc. (NYSE:MO) is expected to report an EPS of $1.28 and revenue of $5.04 billion for the upcoming quarter.
• The company holds a Zacks Rank of #2 (Buy), indicating strong earnings estimates and potential market outperformance.
• Despite challenges, Altria's strategic pricing and brand strength in NJOY and on! are expected to drive Q4 earnings, with a projected $8.3 billion in attributable cash flow in 2025.

Altria Group, Inc. (NYSE:MO), a leading name in the Consumer Staples sector, is gearing up for its quarterly earnings release on January 30, 2025. Wall Street is setting its sights on an earnings per share (EPS) of $1.28 and revenue forecasts around $5.04 billion. These figures reflect Altria's dedication to leveraging its pricing power and enhancing operational efficiencies.

Competing within a sector ranked #14 in the Zacks Sector Rank, Altria outshines many of its peers. With a Zacks Rank of #2 (Buy), the company is recognized for its strong earnings estimates and revisions, hinting at a potential outperformance in the market in the near future. This is particularly noteworthy as it stands against competitors like Simply Good Foods (SMPL) within the sector.

The anticipation for Altria's Q4 earnings is high, with expectations set on the company's strategic pricing and the burgeoning strength of its NJOY and on! brands. Although there's been a slight dip in the Zacks Consensus Estimate for quarterly earnings to $1.27 per share, it still represents a 7.6% increase from the same quarter last year. Revenue estimates are pegged at $5.1 billion, marking a 0.5% increase from the previous year.

Altria's financial health is underlined by its market valuation metrics. The company boasts a P/E ratio of 8.71 and a price-to-sales ratio of 4.38, indicating favorable market valuation of its earnings and revenue. However, its negative debt-to-equity ratio of -7.25 and a current ratio of 0.44 raise concerns about its ability to meet short-term obligations.

Looking forward, Altria is on track to generate $8.3 billion in attributable cash flow in 2025, maintaining an attractive shareholder yield of about 10%. Nonetheless, the emerging threat posed by GLP-1 medications, which could diminish nicotine cravings, looms as a potential long-term challenge for the company.

RBC Capital released a preview on Altria Group (NYSE:MO) ahead of the upcoming Q1/23 earnings announcement on Thursday. The analysts expect Q1 net sales growth of 1.4% (vs. Street’s 2%), smokeable volumes down 8.9% year-over-year, and EPS of $1.18 (vs. Street’s $1.18).

The analysts estimate smokeable net pricing growth of 10.9% (in line with Street’s estimates), compared to a 13.5% growth in Q4/22, and 9.2% growth in Q1/22.

Given the company’s exposure to low-income households that are continuously pressured, coupled with an uncertain macroeconomic outlook in the US, the analysts believe the company will continue to face trade-down risk.

Although volumes continue to decline, the analysts believe the company should be in line with numbers in Q1/23 with carryover pricing taken in October and new pricing taken in January.

RBC Capital released a preview on Altria Group (NYSE:MO) ahead of the upcoming Q1/23 earnings announcement on Thursday. The analysts expect Q1 net sales growth of 1.4% (vs. Street’s 2%), smokeable volumes down 8.9% year-over-year, and EPS of $1.18 (vs. Street’s $1.18).

The analysts estimate smokeable net pricing growth of 10.9% (in line with Street’s estimates), compared to a 13.5% growth in Q4/22, and 9.2% growth in Q1/22.

Given the company’s exposure to low-income households that are continuously pressured, coupled with an uncertain macroeconomic outlook in the US, the analysts believe the company will continue to face trade-down risk.

Although volumes continue to decline, the analysts believe the company should be in line with numbers in Q1/23 with carryover pricing taken in October and new pricing taken in January.

RBC Capital provided their outlook on Altria Group, Inc. (NYSE:MO) ahead of the upcoming Q3 results, expecting net sales to be up 4% (vs. Street’s 2% growth estimate), smokeable volumes down 3% year-over-year (vs. Street’s 5% decline estimate), and EPS of $1.31 (vs. Street’s $1.30).

Based on their channel checks, the analysts believe that the trade-down in the cigarette category continues and Marlboro is still losing market share. However, the company will cycle easier comparisons, which should help reported results relative to underlying trends.

After the agreement with Philip Morris for the US IQOS transition, the analysts are looking for more color on the company's planned innovation. The analysts expect the company’s shares to be relatively stable during earnings, especially as investors continue to take a defensive posture. The analysts expect the company to reiterate its fiscal 2022 EPS guidance of $4.79-$4.93 (vs. Street’s $4.84), representing approximately 4-7% year-over-year growth.