Altria Group Inc. (NYSE: MO) reported second-quarter 2015 results before markets opened Wednesday morning. For the quarter, the tobacco company posted adjusted diluted earnings per share (EPS) of $0.74 on revenues of $4.88 billion, excluding $1.74 billion in excise taxes paid. In the same period a year ago, the company reported adjusted EPS of $0.65 on revenues of $4.57 billion. Second-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.71 EPS and $4.75 billion in revenues, excluding excise taxes.

The maker of Marlboro cigarettes raised fiscal year 2015 adjusted EPS guidance from a range of $2.75 to $2.80 to a new range of $2.76 to $2.81. Adjusted EPS totaled $2.76 in fiscal 2014. The company said it expects growth to moderate in the second half of the year due to lapping the effects of the 2014 improvements in the economy for adult tobacco consumers and lower gasoline prices, expected trade inventory movements and the effect of state excise tax increases. Consensus estimates call for 2015 EPS of $2.81 on revenues of $18.57 billion.

Last August the company increased its quarterly dividend from $0.48 to $0.52, and Altria’s dividend yield at last night’s closing price is 3.9%. The company said that it paid more than $1 billion in dividends in the second quarter and approximately $2 billion in the first half of 2015. Altria reaffirmed that the company expects to continue to return a large amount of cash to shareholders in the form of dividends by maintaining a dividend payout ratio target of approximately 80% of its adjusted diluted EPS.

Altria repurchased about 5.2 million shares of its common stock in the second quarter at a cost of $263 million. The company’s board of directors have approved a new $1 billion share buyback program which the company expects to complete by the end of 2016.

The company’s CEO said:

Altria delivered excellent second-quarter and first-half results, growing adjusted diluted EPS more than 13% with a very strong performance from the smokeable products segment and solid contributions across our other businesses. Further, our tobacco companies’ brands continued to strengthen their market leadership, with record retail share on Marlboro and more than 51% combined share on [smokeless products] Copenhagen and Skoal year-to-date.

Shipment volumes for the Altria’s smokeable products increased by 3.1%, and the company raised prices to keep adjusted margins near 48%.

Altria’s shares are inactive in pre-market trading this morning, having closed last night at $55.27, up about 2.5% on the day, in a 52-week range of $40.26 to $56.70. Thomson Reuters had a consensus analyst price target of around $57.67 before today’s report.

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