Shares of Altria Group, Inc. (NYSE: MO) gained slightly on Friday. The stock has dropped 13% year-to-date. The company’s third-quarter 2023 earnings results managed to surpass projections but this was overshadowed by the lowering of its full-year earnings guidance. The full-year guidance takes into account planned investments in support of smoke-free products.
Quarterly performance
Altria’s net revenues declined 4.1% year-over-year in Q3 2023 to $6.3 billion. Adjusted EPS remained unchanged at $1.28 compared to the prior-year period. Despite this, both the top and bottom line numbers exceeded expectations.
Category performance
Revenues in the third quarter were impacted by a decline in smokeable products revenue, which was down 5.3% due to lower shipment volume and higher promotional investments. Domestic cigarette shipment volume decreased 11.6% in the quarter due to impacts from macroeconomic pressures on adult tobacco consumers’ (ATC) disposable income and the growth of illicit e-vapor products as well as retail share losses.
Oral tobacco products revenue grew 2.2% in Q3, driven by higher pricing. Total US oral tobacco category share for on! nicotine pouches was 6.9%, up 1.7 percentage points YoY. The US nicotine pouch category grew to 32.3% of the US oral tobacco category, and on!’s share of the nicotine pouch category stood at 21.4%.
NJOY
Altria is working on the expansion of NJOY ACE, which is currently the only pod-based e-vapor product that has received marketing authorization from the FDA. During the third quarter, ACE distribution grew to approx. 42,000 stores and is now distributed in all the top 25 convenience store chains by e-vapor volume. The company expects ACE distribution to reach 70,000 stores by year-end.
Outlook
The company narrowed its guidance for full-year 2023 adjusted EPS to a range of $4.91-4.98, representing a growth rate of 1.5-3.0% from an adjusted EPS base of $4.84 in 2022. The previous range for adjusted EPS was $4.89-5.03.
Listen to the conference calls as they happen. Don't miss a beat! With AlphaStreet Intelligence, you can listen to live calls and interviews as they happen, so you never have to worry about missing out on important information.
Most Popular
Infographic: How Lennar (LEN) performed in Q4 2025
Lennar Corporation (NYSE: LEN) reported total revenues of $9.4 billion for the fourth quarter of 2025, compared to $9.9 billion reported in the same period a year ago. Net earnings
Paychex expected to report higher revenue and earnings for Q2 FY26
Paychex, Inc. (NASDAQ: PAYX), a leading provider of human capital management solutions, is undergoing an AI-driven transformation that enhances both its internal operations and client-facing services. Entering fiscal 2026, the
Signet Jewelers (SIG): A look at the progress made on Grow Brand Love
Shares of Signet Jewelers Limited (NYSE: SIG) fell over 3% on Tuesday. The stock has gained 3% year-to-date. The jewelry retailer delivered strong results for the third quarter of 2026,
