Altria Announces A $2.4B Increase To Our Existing $1B Share Repurchase Program In Connection With Pricing Of Offering Of Anheuser-Busch InBev Stock; Raises FY24 EPS Guidance To $5.05-$5.17 Vs $5.05 Est.
Portfolio Pulse from Benzinga Newsdesk
Altria Group, Inc. (MO) announced a $2.4B increase to its existing $1B share repurchase program following the sale of 35 million shares of Anheuser-Busch InBev SA/NV (BUD) for approximately $2.4B. The sale includes a direct repurchase by ABI of $200M of its shares from Altria. The expanded share repurchase program is expected to be completed by December 31, 2024. Altria also raised its FY24 EPS guidance to $5.05-$5.17 from an estimated $5.05, reflecting confidence in its future and the value of its shares. The transactions are expected to be accretive to Altria's 2024 full-year adjusted diluted EPS.
March 14, 2024 | 2:00 pm
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NEUTRAL IMPACT
Anheuser-Busch InBev participates in a transaction with Altria involving the sale of 35 million shares and a direct repurchase of $200M of its shares, indicating strategic financial management.
While the sale and repurchase of shares indicate active financial management by Anheuser-Busch InBev, the direct impact on its stock price in the short term is uncertain. The transaction could be seen as neutral by investors as it reflects both cash outflow for the repurchase and a reduction in outstanding shares.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Altria increases its share repurchase program by $2.4B and raises FY24 EPS guidance to $5.05-$5.17, reflecting a positive outlook and confidence in its financial future.
The increase in the share repurchase program and raised EPS guidance indicate Altria's strong financial position and management's confidence in the company's future performance. This is likely to be viewed positively by investors, potentially leading to a short-term increase in stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100