Core Viewpoint - Altria Group Inc. reported mixed first-quarter 2025 results, with a decline in top-line revenue but an increase in bottom-line earnings, reaffirming its 2025 adjusted EPS guidance [1][2]. Financial Performance - Adjusted earnings per share (EPS) for the first quarter were $1.23, a 6% increase year over year, surpassing the Zacks Consensus Estimate of $1.17 [2]. - Net revenues totaled $5,259 million, down 5.7% year over year, missing the consensus estimate of $4,638.2 million [2]. - Revenues from smokeable products fell 5.8% to $4,622 million, primarily due to reduced shipment volume, although higher pricing provided some offset [4]. Segment Analysis - **Smokeable Products**: - Net revenues decreased 5.8% year over year to $4,622 million, with domestic cigarette shipment volumes down 13.7% [4][5]. - Adjusted operating income (OCI) increased 2.7% to $2,518 million, with adjusted OCI margins growing 4.2 percentage points to 64.4% [6]. - **Oral Tobacco Products**: - Net revenues rose 0.5% to $654 million, driven by higher pricing, despite a 5% decline in domestic shipment volumes [7][8]. - Adjusted OCI remained flat, with a slight decline in adjusted OCI margin by 0.3 percentage points to 69.2% [9]. Shareholder Returns and Guidance - The company repurchased 5.7 million shares for $326 million in the first quarter, with $674 million remaining under its $1 billion share repurchase program [11]. - Altria expects 2025 adjusted EPS in the range of $5.30 to $5.45, reflecting a year-over-year growth of 2% to 5% from a base of $5.19 in 2024 [12][13]. Market Context - Altria's stock has gained 12.6% over the past three months, compared to the industry's growth of 21.8% [15].

Altria's First-Quarter 2025 Earnings Conference Call April 29, 2025 1 | ALCS | Q1 2025 | 4.29.25 | For Investor Purposes ONLY Safe Harbor Statement Statements, including earnings guidance, in this presentation that are not reported financial results or other historical information are "forward-looking statements" within the meaning of Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on our current plans, estimates and expectations, and are not guarantees of future ...

NEW YORK, April 29, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Altria Group, Inc. (“Altria” or the “Company”) (NYSE: MO). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether Altria and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining the class action] On April 2, 2025, D ...

Altria (MO) reported $4.52 billion in revenue for the quarter ended March 2025, representing a year-over-year decline of 4.2%. EPS of $1.23 for the same period compares to $1.15 a year ago.The reported revenue represents a surprise of -2.57% over the Zacks Consensus Estimate of $4.64 billion. With the consensus EPS estimate being $1.17, the EPS surprise was +5.13%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next ...

Altria (MO) came out with quarterly earnings of $1.23 per share, beating the Zacks Consensus Estimate of $1.17 per share. This compares to earnings of $1.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.13%. A quarter ago, it was expected that this owner of Philip Morris USA, the nation's largest cigarette maker would post earnings of $1.27 per share when it actually produced earnings of $1.29, delivering a surprise of 1.5 ...

Altria Group (MO) Q1 2025 Earnings Call April 29, 2025 09:00 AM ET Company Participants Mac Livingston - VP, IR, Altria Client ServicesBilly Gifford - CEOSal Mancuso - EVP and CFOMatthew Smith - Director - Food & TobaccoGaurav Jain - Head of EU SMID, EU packaging, and Global Tobacco and CannabisBonnie Herzog - Managing Director Faham Baig - Executive Director - Equity Research Conference Call Participants Emma Rumney - Analyst Operator Good day, and welcome to the Altria Group twenty twenty five First Quart ...

Financial Performance - For the three months ended March 31, 2025, net earnings decreased by 49.4% to $1,077 million, and diluted EPS decreased by 47.9% to $0.63 compared to the same period in 2024 [193]. - Adjusted net earnings for Q1 2025 increased by 2.1% to $2,089 million, while adjusted diluted EPS rose by 6.0% to $1.23 compared to Q1 2024 [193]. - Net revenues for the three months ended March 31, 2025, decreased by $317 million (5.7%) to $5,259 million, primarily due to lower revenues in the smokeable products segment [218]. - Operating income for the same period decreased by $886 million (33.1%) to $1,788 million, largely due to lower OCI and the non-cash impairment of the e-vapor reporting unit goodwill [221]. - Reported net earnings for the three months ended March 31, 2025, were $1,077 million, a decrease of $1,052 million (49.4%) compared to the previous year [223]. - Adjusted net earnings increased by $43 million (2.1%) to $2,089 million, driven by higher OCI and a lower adjusted tax rate [224]. - Net cash provided by operating activities decreased to $2,720 million in Q1 2025 from $2,877 million in Q1 2024, primarily due to lower net revenues [346]. E-Vapor and Tobacco Products - The e-vapor category grew approximately 30% year-over-year, with illicit flavored disposable e-vapor products now representing over 60% of the category [187]. - The company recorded a non-cash impairment of $884 million related to the e-vapor reporting unit due to ITC orders on NJOY ACE effective March 31, 2025 [188]. - As of March 31, 2025, the e-vapor reporting unit recorded a non-cash goodwill impairment of $873 million, reducing its carrying value of goodwill to $895 million [203]. - In Q1 2025, PM USA reported a domestic cigarette volume decline of 13.7% compared to Q1 2024, with an estimated adjusted decline of 12% [229]. - The nicotine pouch category reached 49.1% of the U.S. oral tobacco category, increasing by 8.7 share points year-over-year [233]. - The traditional smokeless category's share declined to 50.9%, down 8.7 share points compared to Q1 2024, with Copenhagen's share at 16.9%, a decrease of 3.2 share points [234]. - Discount cigarette brands reached a 30.9% share in Q1 2025, up 1.8 share points from Q1 2024, reflecting increased pressure on premium brand sales [236]. Regulatory Environment - The proposed FDA tobacco product standard aims to establish a maximum nicotine level in cigarettes significantly lower than current averages, which could materially impact the business [189]. - The FDA's five-year strategic plan aims to enhance tobacco regulation and enforcement, addressing concerns about illicit products and market pathways [245]. - The FDA proposed a tobacco product standard in January 2025 to establish a maximum nicotine level in cigarettes and other combustible tobacco products, aiming to make them minimally or non-addictive [270]. - The FDA's proposed rule for tobacco product manufacturing practices could lead to increased compliance costs for manufacturers [271]. - The FDA has communicated that many manufacturers of flavored e-vapor products have received marketing denial orders (MDOs) for insufficient evidence demonstrating public health benefits [267]. - The DOJ and FDA announced a federal task force in June 2024 to combat illegal marketing and sale of e-vapor products, indicating increased regulatory scrutiny [299]. Market Dynamics - Discretionary income pressures on adult tobacco consumers are expected to continue influencing purchasing behaviors through 2025, despite a moderation in inflation rates [186]. - Adult tobacco consumers faced significant financial pressure, leading to a nearly 13% decline in consumer sentiment compared to Q4 2024 [235]. - Illicit trade in tobacco products continues to adversely impact sales volumes and market shares, undermining legitimate distribution channels [297]. - Tax increases are expected to adversely impact sales, leading to lower consumption levels and a potential shift from premium to non-premium tobacco products [280]. Financial Position and Debt - At March 31, 2025, the company had $4.7 billion in cash and cash equivalents, with access to a $3.0 billion senior unsecured revolving credit agreement [332]. - Total long-term debt increased to $26.1 billion as of March 31, 2025, up from $24.9 billion at the end of 2024 [337]. - The fair value of the company's long-term debt as of March 31, 2025, is $24.1 billion, an increase from $22.7 billion on December 31, 2024 [369]. - A 1% increase in market interest rates would result in a decrease in fair value of $1.8 billion as of March 31, 2025, compared to a decrease of $1.7 billion on December 31, 2024 [369]. Strategic Initiatives - The company continues to monitor evolving regulatory and macroeconomic conditions that could materially impact its business operations [237]. - The company emphasizes the importance of managing strategic transactions and the associated risks to achieve anticipated benefits [367]. - The company has not yet adopted new accounting guidance that may affect its financial statements [350].

Financial Performance - Altria reported Q1 2025 net revenues of $5,259 million, a decrease of 5.7% compared to Q1 2024[3]. - Adjusted diluted EPS for Q1 2025 increased by 6.0% to $1.23, while reported diluted EPS decreased by 47.9% to $0.63[3][23]. - Net revenues for Q1 2025 were $5,259 million, a decrease of 5.7% compared to $5,576 million in Q1 2024[63]. - Gross profit for Q1 2025 was $3,249 million, down 0.9% from $3,280 million in Q1 2024[63]. - Net earnings for Q1 2025 were $1,077 million, representing a significant decline of 49.4% from $2,129 million in Q1 2024[70]. - Diluted earnings per share (EPS) for Q1 2025 were $0.63, a decrease of 47.9% compared to $1.21 in Q1 2024[70]. - Operating companies income for Q1 2025 was $1,888 million, down 32.9% from $2,813 million in Q1 2024[63]. - The company incurred acquisition-related expenses of $34 million and asset impairment costs of $873 million in Q1 2025[78]. Segment Performance - The smokeable products segment saw a 13.7% decrease in domestic cigarette shipment volume, attributed to industry decline and retail share losses[37]. - Total smokeable products shipment volume decreased by 13.4% to 14,609 million sticks in Q1 2025 from 16,867 million sticks in Q1 2024[39]. - Smokeable products generated net revenues of $4,622 million in Q1 2025, a decrease of 5.8% from $4,906 million in Q1 2024[65]. - Net revenues for oral tobacco products increased by 0.5% to $654 million in Q1 2025 from $651 million in Q1 2024[44]. - Reported OCI for oral tobacco products decreased by 0.5% to $433 million in Q1 2025 from $435 million in Q1 2024[44]. - Total oral tobacco products shipment volume decreased by 5.0% to 175.4 million cans in Q1 2025 from 184.6 million cans in Q1 2024[46]. - The oral tobacco products segment's shipment volume decreased by an estimated 1% when adjusted for calendar differences and trade inventory movements[48]. Market Share and Retail Performance - Marlboro's retail share of total cigarettes declined by 1.0 percentage points to 41.0% in Q1 2025 compared to 42.0% in Q1 2024[40]. - Copenhagen's retail share decreased by 3.2 percentage points to 16.9% in Q1 2025 compared to 20.1% in Q1 2024[50]. - The U.S. nicotine pouch category grew to 49.1% of the U.S. oral tobacco category, an increase of 8.7 percentage points versus the prior year[51]. - The total cigarette industry discount retail share increased by 1.8 percentage points to 30.9% compared to the prior year[41]. - Overall, the company is experiencing a downward trend in retail shares for key products, indicating potential challenges in market performance[86]. Guidance and Future Outlook - The company expects full-year 2025 adjusted diluted EPS to be in the range of $5.30 to $5.45, reflecting a growth rate of 2% to 5% from a base of $5.19 in 2024[12][14]. - Altria's guidance for 2025 considers the impact of increased tariffs and assumes limited effects from enforcement in the illicit e-vapor market[13][14]. - The company anticipates continued challenges in the credit and capital markets, which may impact future performance[61]. Asset and Liability Overview - Total assets increased to $35,760 million as of March 31, 2025, compared to $35,177 million at the end of 2024[76]. - Total liabilities rose to $39,220 million, up from $37,365 million at the end of 2024, with total debt increasing to $26,059 million[76]. - Cash and cash equivalents increased significantly to $4,726 million in Q1 2025, up from $3,127 million at the end of 2024[76]. - The company reported a total of $3,032 million in accrued settlement charges as of March 31, 2025, compared to $2,354 million at the end of 2024[76]. Impairment and Charges - Altria recorded a non-cash impairment charge of $873 million related to e-vapor reporting unit goodwill in Q1 2025[6][26]. - The company reported an impairment of goodwill amounting to $873 million in Q1 2025[63]. - The segment detail of excise taxes on products sold was $740 million in Q1 2025, down from $859 million in Q1 2024[68]. - Losses from investments in equity securities totaled $143 million in Q1 2025, compared to losses of $295 million in Q1 2024[68].

Core Viewpoint - Altria remains an attractive investment for income investors due to its long history of dividend increases and its current high dividend yield of 7% [1][14] Company Strategy - Altria has faced challenges over the past decade due to declining smoking rates and strategic missteps, including a $12 billion investment in Juul and a failed investment in Cronos Group [5] - The company has shifted focus to smoke-free products, selling the rights to market Iqos back to Philip Morris International and investing in Njoy, which has received FDA marketing authorization for its pod-based e-vapor product [6][8] - Altria's next-gen portfolio includes on!, an oral nicotine pouch, and a new heated tobacco product called Ploom, developed in partnership with JT Group [7] Market Performance - Njoy's consumables saw a 15.3% increase to 12.8 million units, and device shipments rose 22.2% to 1.1 million, with retail market share nearly doubling to 6.4% [8] - Despite Njoy's growth, cigarettes still account for the majority of Altria's revenue, with volume sales declining from 76.4 million in 2023 to 68.6 million in 2024, while smokeable products represented 88% of revenue in 2024 [9] Future Goals - Altria aims for a mid-single digits adjusted earnings per share (EPS) compound annual growth rate (CAGR) off $4.84 in 2022, with adjusted EPS rising 3.4% to $5.12 in 2024, resulting in a 2.9% CAGR over the last two years [10] - The company plans to increase its dividend by mid-single digits annually, following a 4.1% increase in 2024, and targets a debt-to-EBITDA ratio of 2, currently at 2.1 [11] - Altria expects to maintain an adjusted operating margin of at least 60% through 2028, although it has struggled to meet growth targets and has adjusted its expectations for Njoy's cash flow contributions [12] Investment Outlook - Altria's stock trades at a price-to-earnings ratio of 12, with a 7% dividend yield, indicating potential for success even if not all 2028 goals are met [13] - In the current economic climate, Altria is positioned to potentially outperform the S&P 500, benefiting from its status in the consumer staples sector and the consistent demand for its products [14] - Overall, despite declining cigarette consumption, Altria is expected to be in a better position three years from now [15]

Altria Group, Inc. (MO) is slated to report its first-quarter 2025 earnings on April 29 before the market opens.The Zacks Consensus Estimate for first-quarter revenues stands at $4.6 billion, indicating a 1.7% decline from the same period last year. Although the consensus mark for earnings has moved down by 2 cents in the past 30 days to $1.17 per share, the projection indicates 1.7% growth from the year-ago quarter’s reported figure. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar ...