Investors Can't Make Up Their Minds on Altria Earnings

Companies and Brands

Published: February 1, 2017 8:55 am

Last Updated: January 12, 2020 3:17 pm

Altria Group Inc. (NYSE: MO) reported its fourth-quarter financial results before the markets opened on Wednesday. The company said that it had $0.68 in earnings per share (EPS) and $6.25 billion in revenue (adjusted revenues, which excludes excise taxes, fell to $3.98 billion). The consensus estimates from Thomson Reuters were $0.67 in EPS and revenue of $4.8 billion. In the same period of last year, it posted EPS of $0.67 and $4.73 billion in revenue.

In terms of guidance for the 2017 full year, Altria expects to see EPS in the range of $3.26 to $3.32 and capital expenditures between $180 million and $220 million. The consensus estimates call for $3.33 in EPS and $19.81 billion in revenue.

The smokeable products segment grew income in the fourth quarter despite tough 2015 full-year comparisons. This segment’s net revenues decreased by 1.9% to $5.45 billion.

The smokeless products segment recorded strong income growth and grew Copenhagen and Skoal’s combined retail share for the full year of 2016. Net revenues increased 7.2% to $521 billion.

In the wine segment, Ste. Michelle grew net revenues by 7.4% in the fourth quarter to $248 billion.

Last month, Altria acquired privately held Sherman Group Holdings, and its subsidiaries including Nat Sherman, which sells super-premium cigarettes and premium cigars.

Marty Barrington, board chair, chief executive and president of Altria, commented:

Altria had another outstanding year. We grew our earnings in line with our long-term objectives while returning a large amount of cash to shareholders, improving our balance sheet and strengthening our organizational capability, thus positioning Altria to continue to deliver on our long-term financial goals. In 2016, Altria’s total return to shareholders of 20.5% outpaced both the S&P 500 and the S&P Food, Beverage and Tobacco Index, marking the fourth consecutive year that total shareholder return exceeded 20%.

On the books, Altria’s cash and cash equivalents totaled $4.57 billion at the end of the quarter, up from $2.37 billion at the end of the previous fiscal year.

Shares of Altria closed Tuesday at $71.18, with a consensus analyst price target of $70.18 and a 52-week trading range of $58.84 to $71.44. Following the earnings report, the stock was down about 1.5% at $70.11 in early trading indications Wednesday.

100 Million Americans Are Missing This Crucial Retirement Tool

The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.

Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.

A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.

Click here to learn how to get a quote in just a few minutes.