Altria Posts Solid Earnings on Diversification, Share Buybacks

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By Trey Thoelcke Updated Published
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Altria Group Inc. (NYSE: MO) reported first-quarter 2014 results before markets opened Thursday. The tobacco company posted adjusted diluted earnings per share (EPS) of $0.57 on revenues of $4.01 billion. In the same period a year ago, the company reported adjusted EPS of $0.54 on revenues of $3.97 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.57 and $4.03 billion in revenues.

The company’s CEO said:

During the first quarter, Altria grew adjusted diluted EPS by 5.6% behind the strength of our core tobacco businesses and their leading premium brands. Our smokeable and smokeless products segments grew their adjusted operating companies income and expanded margins. … We also continued to make disciplined investments to grow new income streams with innovative products.

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During the first quarter, Altria repurchased approximately 7.5 million shares of its common stock for a total cost of around $272 million. The company has about $185 million remaining in its current $1 billion program, which it expects to complete by the end of the third quarter of 2014.

For the full year, Altria forecasts adjusted diluted EPS in the range of $2.51 to $2.58. The consensus estimate for 2013 calls for EPS of $2.56 on revenues of $17.84 billion. For the second quarter, analysts estimate EPS at $0.67 on $4.64 billion in revenue.

Altria is seen as a defensive stock for its high and safe dividend, as well as having its fingers into e-cigarettes and beer.

Altria shares were inactive in premarket trading Thursday, having closed Wednesday at $38.31. This 52-week range is $33.12 to $38.66, and Thomson Reuters had a consensus analyst price target of only $38.67 before this report.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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