Shares of Altria Group, Inc. (NYSE: MO) stayed red on Thursday. The stock has gained 13% year-to-date. The tobacco company is slated to report its earnings results for the second quarter of 2025 on Wednesday, July 30, before markets open. Here’s a look at what to expect from the earnings report:
Revenue
Analysts are projecting revenues of $5.19 billion for Altria in Q2 2025. The company’s net revenues decreased nearly 5% year-over-year to $6.2 billion in Q2 2024. In Q1 2025, net revenues were down nearly 6% YoY to $5.2 billion.
Earnings
The consensus estimate for Q2 2025 earnings per share is $1.38, which compares to adjusted EPS of $1.31 reported in Q2 2024. In Q1 2025, adjusted EPS increased 6% YoY to $1.23.
Points to note
Altria has been seeing declines in revenue and shipments in its smokeable products segment. These declines have been partly offset through higher pricing. In Q1, domestic cigarette shipment volume was down nearly 14%, due to headwinds from growth in illicit e-vapor products and pressures on consumers’ discretionary incomes. These challenges may have persisted in the second quarter.
Even as the company strives to make progress in its smoke-free business, it is facing challenges in the e-vapor category, with the rise in illicit disposable products impacting NJOY. In Q1, NJOY’s devices shipment volume fell 70% YoY.
Meanwhile, MO’s oral tobacco products segment has been benefiting from gains in nicotine pouches. This growth is being led by the on! brand, which saw shipments grow by 18% in Q1. On!’s share of the nicotine pouch category grew to nearly 18% last quarter. This momentum could have benefited its performance in Q2.