Altria Faces Q2 Setbacks: EPS Miss, Cigarette Sales Plunge, But Smoke-Free Innovations Shine
Portfolio Pulse from Shivani Kumaresan
Altria Group Inc (NYSE:MO) reported a 3% year-on-year decline in Q2 FY24 revenues to $5.28 billion, missing analyst estimates. The decline was driven by a 5.6% decrease in smokeable products revenue, partially offset by a 4.6% increase in oral tobacco products revenue. Adjusted EPS of $1.31 missed the consensus of $1.34. Despite setbacks, Altria's smoke-free products showed strong performance. The company narrowed its FY24 adjusted EPS guidance to $5.07 – $5.15.
July 31, 2024 | 1:03 pm
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Altria Group Inc (NYSE:MO) reported a 3% decline in Q2 FY24 revenues to $5.28 billion, missing analyst estimates. The decline was driven by a 5.6% decrease in smokeable products revenue, partially offset by a 4.6% increase in oral tobacco products revenue. Adjusted EPS of $1.31 missed the consensus of $1.34. Despite setbacks, Altria's smoke-free products showed strong performance. The company narrowed its FY24 adjusted EPS guidance to $5.07 – $5.15.
Altria's Q2 FY24 earnings report showed a decline in revenues and missed analyst estimates for both revenue and EPS. The significant drop in smokeable products revenue and domestic cigarette shipment volume, coupled with a lower-than-expected EPS, are likely to negatively impact the stock price in the short term. However, the strong performance of smoke-free products and the narrowed EPS guidance provide some positive outlook.
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