Altria's Marlboro Shipment Volume Plunges 8.7% In Q1 - What's Going On?
Portfolio Pulse from Shivani Kumaresan
Altria Group Inc (NYSE:MO) reported a Q1 FY24 sales decline of 2.5% Y/Y to $5.58 billion, surpassing analyst estimates of $4.71 billion. The decline was mainly due to lower revenues in the smokeable products segment, with Marlboro shipments down 8.7%. However, oral tobacco products saw a revenue increase of 3.7%. The company's gross profit and operating income also fell, but adjusted EPS met consensus estimates. Altria paid $1.7 billion in dividends and expects $1 billion remaining in its share repurchase program. The company reaffirmed its FY24 adjusted EPS outlook of $5.05 - $5.17 and anticipates growth in the second half of the year. MO shares rose 0.19% in premarket trading.
April 25, 2024 | 12:28 pm
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POSITIVE IMPACT
Altria's Q1 FY24 report shows a sales decline but beats analyst estimates, with a notable decrease in Marlboro shipments. Adjusted EPS met expectations, and the company reaffirmed its FY24 EPS outlook. Shares slightly up in premarket.
Despite the sales decline, Altria's performance exceeding analyst expectations and the reaffirmation of its FY24 EPS outlook are positive signals for investors. The slight premarket stock price increase reflects initial positive market reaction. However, the significant drop in Marlboro shipments could be a concern for long-term revenue sustainability in the smokeable products segment.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100