Altria Group Set to Release Earnings amid Strong Market Performance
Altria Group, Inc. (MO), based in Richmond, Virginia, is a major player in the tobacco industry, known for products like Marlboro, Copenhagen, and NJOY. With a market capitalization of $87 billion, the company’s offerings range from traditional cigarettes to e-vapor and smoke-free products. Investors are gearing up for the fiscal fourth-quarter earnings announcement on Thursday, January 30, 2024, scheduled to occur before the market opens.
Analysts Anticipate Positive Earnings Growth
Analysts predict that Altria will report a profit of $1.28 per share on a diluted basis, reflecting an 8.5% increase from the $1.18 per share reported in the same quarter last year. Over the past four quarters, the company has exceeded expectations twice while falling short on two occasions.
Full-Year Projections Show Steady Growth
For the entire fiscal year, expectations for Altria’s EPS stand at $5.12, a 3.4% increase compared to $4.95 in fiscal 2023. Looking ahead, EPS is forecasted to grow further, reaching $5.33 for fiscal 2025, which represents a 4.1% rise year over year.
Altria Stock Outperforms Major Indices
Over the last 52 weeks, MO stock has gained 24.2%, significantly outperforming the S&P 500’s gain of 22.1%. The stock has also surpassed the Consumer Staples Select Sector SPDR Fund’s (XLP) modest 5.1% increase in the same period.
Strategic Investments Fuel Growth
The company’s robust performance is largely attributed to strategic investments in smoke-free alternatives, aimed at doubling sales and enhancing efficiency through cost-saving initiatives. Altria’s distribution network has notably boosted its NJOY vape business, positioning it for sustained growth alongside its established, profitable cigarette segment.
In its recent Q3 results released on October 31, MO shares surged over 7%. Revenue for the quarter was reported at $6.3 billion, showing a slight decline year over year. The adjusted EPS reached $1.38, exceeding analysts’ expectations of $1.36. Management has projected the full-year adjusted EPS to fall between $5.07 and $5.15.
Analysts Exercise Caution on Stock Outlook
The overall consensus among analysts regarding MO stock leans toward caution, with a “Hold” rating prevailing. Out of 10 analysts, four recommend a “Strong Buy,” four suggest a “Hold,” and two advocate a “Strong Sell.” The average price target for MO currently sits at $54.38, indicating a potential upside of about 5.9% from current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
