Categories AlphaGraphs, Consumer, Earnings

Altria’s shares gain after Q4 results match expectations

Altria Group Inc. (MO) reported revenue and earnings in line with consensus estimates for the fourth quarter of 2018. Shares were up 1% in morning trade on Thursday.

Net revenues remained flat at $6.1 billion. Revenues, net of excise taxes, grew 1.5% to $4.8 billion. Net income dropped 75% to $1.25 billion, or $0.66 per share, mainly due to lower income taxes in 2017, resulting from tax reform benefits, as well as higher asset impairment and acquisition-related costs in 2018. Adjusted EPS grew 4.4% to $0.95.

Net revenues in Smokeable products saw a slight increase of 0.4% as higher pricing and lower promotional investments were offset by lower shipment volume. Revenues net of excise taxes rose 1.9%. Net revenues in Smokeless products dropped 0.5%, mainly due to lower shipment volume, while revenues, net of excise taxes, fell 0.2%.

In Smokeable products, domestic cigarette shipment volume fell 4.4%, on a reported basis, mainly due to the industry’s rate of decline and retail share losses. On an adjusted basis, volumes fell by around 5.5%. In Smokeless products, reported domestic shipment volume dropped 1.9%, primarily driven by the industry’s rate of decline. On an adjusted basis, shipment volume fell around 2%.

Altria announces minority stake in JUUL and cost reduction plans

In the Wine segment, net revenues decreased 11%, mainly due to lower shipment volume, partially offset by favorable premium mix.

For full-year 2019, Altria expects adjusted EPS to grow 4-7% from 2018 to a range of $4.15 to $4.27. The company expects the total domestic cigarette industry volume to decline 3.5% to 5%. For the year, capital expenditures are expected to range between $225 million and $275 million.

During the quarter, Altria acquired stakes in cannabinoid company Cronos Group (CRON) and vaping company JUUL (JUUL). The company took a 45% stake in Cronos for around $1.8 billion and a 35% stake in JUUL for $12.8 billion.

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

What to look for when CVS Health (CVS) reports Q3 earnings

Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain

eBay (EBAY): A few factors that helped drive growth in Q3 2024

Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,

CVX Earnings: Chevron reports lower revenue and profit for Q3 2024

Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top