Altria (MO) set to report Q4 2024 earnings results, a few points to note

Shares of Altria Group, Inc. (NYSE: MO) were down over 1% on Tuesday. The stock has gained 5% over the past three months. The tobacco giant is slated to report its fourth quarter 2024 earnings results on Thursday, January 30, before market open. Here’s a look at what to expect from the earnings report:

Revenue

Analysts are projecting revenue of $5.04 billion for Altria in Q4 2024, which compares to revenue of $5.02 billion reported in the same quarter a year ago. In the third quarter of 2024, revenues rose 1% year-over-year to $5.34 billion.

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.