Companies and Brands
Altria Posts Solid Earnings on Diversification, Share Buybacks
Published:
Last Updated:
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.
SEE ALSO: Four Defensive Stocks for Cautious Investors
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.
SEE ALSO: The Nine Most Counterfeited Products in America
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
