Revenue
Earnings
The consensus target for earnings per share in Q4 2024 is $1.28, which compares to adjusted EPS of $1.18 reported in Q4 2023. In Q3 2024, adjusted EPS increased 8% YoY to $1.38.
Points to note
Altria is making good progress on its smoke-free transformation. Its smoke-free business is benefiting from gains in NJOY vaping devices and on! nicotine pouches. In the third quarter of 2024, NJOY consumables shipment volume increased 15.6% YoY to 10.4 million units while its device shipment volume nearly tripled to 1.1 million units. However, in the e-vapor category, the rise in usage of illicit disposable products remains a challenge.
Altria is expected to benefit from growth in its oral tobacco products business. In Q3, revenues in this segment grew over 5%, driven by higher pricing and shipment volumes. In the US, nicotine pouches make up nearly 44% of the oral tobacco product category. On! nicotine pouches are demonstrating strong growth. In Q3, on! shipment volume grew by 46% to nearly 42 million cans.
The company continues to face challenges in its smokeable products business as cigarette shipment volumes continue to decrease. In Q3, domestic cigarette shipment volume fell nearly 9%. The industry is facing pressures from growth in illicit e-vapor products and continued discretionary income pressures on consumers. These headwinds are likely to have persisted in the fourth quarter as well.