Altria Surpasses EPS and Revenue Estimates in Q4 2024

Altria Group reports solid Q4 results, with adjusted EPS of $1.29 exceeding estimates. Revenue also surpassed expectations, reflecting stable sales in the competitive tobacco market amidst challenges.

Date: 30-01-2025

AI Rating: 7

Financial Highlights
Altria Group (NYSE:MO) demonstrated a solid financial performance in its fourth-quarter report, with adjusted earnings per share (EPS) of $1.29, slightly surpassing analysts' estimates of $1.28. This indicates a positive signal for the company as it managed to achieve a 9.3% increase compared to the previous year’s EPS of $1.18.

Revenue figures also showcased a favorable outcome, with reported revenues net of excise taxes at $5.11 billion compared to the forecasted $5.05 billion, resulting in an increase of 1.6% year-over-year. Such growth demonstrates Altria's ability to maintain its market position despite regulatory and competitive hurdles.

Operational Metrics and Costs
The adjusted operating companies income (OCI) margin stood at 61.2%, which shows an improvement of 220 basis points from the last year’s 59.0%. This metric underscores effective cost management and pricing strategies that have positively influenced profit margins.

Product Performance
Altria's revenue from oral tobacco products grew by 2.7%, significantly supported by a 44.4% increase in shipment volumes of on! nicotine pouches. The company has also demonstrated solid growth in its NJOY segment with a 15.3% increase in consumables’ shipment volumes. This positive trend indicates the company’s successful diversification efforts within emerging smoke-free product categories.

Future Outlook
Looking ahead, Altria is forecasting adjusted EPS growth of 2% to 5% for the year 2025. This reflects a tempered optimism amidst ongoing regulatory challenges. In addition, a new $1 billion share repurchase program highlights management’s confidence in generating stable cash flows going forward.

Stocks: MO