Financial Performance - Altria's adjusted diluted EPS for 2025 increased by 4.4% to $5.42, while reported diluted EPS decreased by 37.0% to $4.12 due to non-cash impairment charges and unfavorable tax items [3][24]. - For Q4 2025, net revenues were $5.846 billion, a decrease of 2.1% compared to Q4 2024, with revenues net of excise taxes at $5.079 billion, down 0.5% [4][24]. - For the full year 2025, net revenues totaled $23,279 million, a decrease of 3.1% from $24,018 million in 2024 [74]. - Net earnings for Q4 2025 dropped to $1,117 million, a significant decline of 63.2% from $3,039 million in Q4 2024 [70]. - 2025 net earnings decreased to $1,117 million, a 63.2% decline from 2024's $3,039 million [81]. - Adjusted net earnings for 2025 were $2,182 million, a slight decrease of 1.4% compared to $2,214 million in 2024 [83]. - The company reported a significant asset impairment of $1,921 million in 2025, impacting net earnings [85]. - The company reported a fair value adjustment for NJOY transaction contingent payments of $25 million [99]. - Total net revenues for the company reached $23,279 million, with revenues net of excise taxes at $20,139 million [102]. Shareholder Returns - The company returned $8 billion to shareholders in 2025 through dividends and share repurchases, with $7 billion in dividends and $1 billion in share repurchases [3][6]. - Altria aims for a progressive dividend growth target of mid-single digits annually through 2028, having increased its dividend by 3.9% in 2025 [10]. Cost Management - The company plans to achieve cumulative cost savings of at least $600 million by the end of 2029 through its Optimize & Accelerate initiative [10]. - The company incurred asset impairment and exit costs of $978 million in 2025, compared to $389 million in 2024 [74]. - The company incurred asset impairment, exit, and implementation costs totaling $2,184 million [102]. Market Performance - Domestic cigarette shipment volume for the smokeable products segment decreased by 7.9% in the fourth quarter of 2025, with total cigarette shipment volume down 10.0% for the full year [38][42]. - Marlboro's retail share of the total cigarette category was 39.8% in Q4 2025, a decrease of 1.5 percentage points compared to the previous year [43][44]. - For oral tobacco products, net revenues increased by 2.0% to $706 million in Q4 2025, while revenues net of excise taxes rose by 2.9% to $682 million [46][47]. - The total oral tobacco products retail share decreased to 30.9% in Q4 2025 from 32.9% in Q3 2025 [98]. Operational Metrics - Altria's total adjusted operating companies income (OCI) margin for 2025 was 62.4%, while the reported OCI margin was 51.1% [12]. - Reported OCI for smokeable products increased by 0.2% to $2.643 billion in Q4 2025, while adjusted OCI decreased by 2.4% to $2.643 billion [35][37]. - Reported operating companies income (OCI) was $10,286 million, while adjusted OCI stood at $12,568 million [102]. - The OCI margin was reported at 51.1%, with adjusted OCI margin at 62.4% [102]. Debt and Assets - Altria's debt-to-Consolidated EBITDA ratio was 2.0x at year-end 2025, aligning with its target [10]. - Total liabilities increased to $38,469 million in 2025 from $37,365 million in 2024 [89]. - Long-term debt rose to $24,140 million in 2025, compared to $23,399 million in 2024 [89]. - Total debt as of December 31, 2025, amounted to $25,709 million, with a cash and cash equivalents balance of $4,474 million [99]. Future Outlook - Altria expects 2026 full-year adjusted diluted EPS to be in the range of $5.56 to $5.72, representing a growth rate of 2.5% to 5.5% from 2025 [3][13]. - The company is focusing on transitioning adult smokers to smoke-free products and exploring new growth opportunities beyond nicotine [57]. - The company plans to continue focusing on operational efficiency and strategic acquisitions to enhance market position [83].

Altria Group, Inc. (NYSE:MO) is one of the 11 Most Profitable Cheap Stocks to Invest In Now. On January 26, UBS increased its price target on Altria Group, Inc. (NYSE:MO) from $63 to $67 and maintained its Buy rating on the stock. The firm noted that risks facing the company, including worries around combustible volume mix, duty drawback benefits, and lower nicotine pouch volumes, are manageable. UBS also noted that while progress in smoke-free products is slow, Altria Group, Inc. (NYSE:MO) is still well ...

Core Insights - Altria Group, Inc. is expected to report its fourth-quarter 2025 earnings on January 29, with revenues projected at $5 billion, reflecting a 2% decline year-over-year, while earnings per share (EPS) is estimated at $1.31, indicating a 1.6% growth from the previous year [1][9] Earnings Performance - Altria has a trailing four-quarter average earnings surprise of 3.1%, with the last quarter's earnings surpassing the Zacks Consensus Estimate by 0.7% [2] - The company currently has an Earnings ESP of +1.54% and a Zacks Rank of 3 (Hold), suggesting a favorable outlook for an earnings beat [4][3] Factors Influencing Q4 Earnings - The fourth-quarter performance is likely influenced by disciplined pricing and effective cost control, despite pressure on domestic cigarette shipment volumes due to inflation [5] - Altria has maintained steady profitability through solid revenue management and disciplined cost control, with pricing gains across core smokeable brands cushioning operating income [6] Oral Tobacco Business - A significant contributor to Altria's earnings is its oral tobacco business, particularly nicotine pouches, which have aided segment profitability despite competitive pressures [7] Stock Performance - Over the past three months, Altria's stock has gained 0.6%, underperforming the Zacks Tobacco industry's 12.1% increase and the Consumer Staples sector's 3.7% growth [8] - Compared to peers, Altria's stock performance has lagged, with competitors like Philip Morris and British American Tobacco showing higher gains [8] Valuation - Altria's shares are trading at a forward 12-month price-to-earnings ratio of 11.39, below the industry average of 15.48, indicating compelling value for investors [10] - The valuation gap is notable when compared to key competitors, which have significantly higher P/E ratios [11] Investment Outlook - Altria demonstrates resilience through effective pricing strategies and cost management, offsetting volume pressures in its core cigarette business [12] - The expanding smoke-free portfolio, particularly nicotine pouches, is a key driver for margin support and earnings stability, making Altria an appealing defensive consumer staples stock [12]

Virginia-based Altria Group, Inc. (MO) manufactures and sells smokeable and oral tobacco products. Valued at $104.1 billion by market cap, the company offers cigarettes primarily under the Marlboro brand, large cigars and pipe tobacco under the Black & Mild brand, moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands, and more. Shares of this leading tobacco company have outperformed the broader market over the past year. MO has gained 19% over this time frame, ...

Core Viewpoint - Investing in dividend stocks provides a reliable income stream that can be reinvested or used for expenses, allowing investors to hold shares without selling them [1] Group 1: Consumer Spending and Dividend Stocks - Consumer spending is crucial for the economy, and high-quality dividend stocks can be found in consumer-facing companies with strong brands [2] - Examples of such companies include Costco Wholesale, The Coca-Cola Company, and Altria Group, each representing different investment styles [2] Group 2: Costco Wholesale - Costco Wholesale is a leading retailer with a loyal customer base, known for its membership model and bulk merchandise sales [3] - The company has a market capitalization of $431 billion, with a current stock price of $970.66 and a dividend yield of 0.52% [4][5] - Costco has paid and raised its dividend for 20 consecutive years, spending only a quarter of its earnings on dividends, indicating potential for future growth [5] Group 3: The Coca-Cola Company - Coca-Cola is a global beverage leader with a strong track record of dividend growth, having increased its dividend for 62 consecutive years [6] - The company has a market capitalization of $316 billion, with a current stock price of $73.55 and a dividend yield of 2.77% [7][8] - Coca-Cola's growth is supported by a rising global population and brand recognition, allowing for continued expansion in a fragmented beverage market [8] Group 4: Altria Group - Altria Group, known for its Marlboro cigarettes, has maintained profitability despite declining cigarette sales due to its pricing power [9] - The company has a market capitalization of $107 billion, with a current stock price of $63.62 and a dividend yield of 6.54% [10] - Altria has achieved 54 consecutive annual dividend increases, providing a substantial yield despite low single-digit earnings growth [10]

Core Insights - Altria Group, Inc. is shifting its focus from traditional tobacco products to non-nicotine and wellness categories as part of its long-term growth strategy, reinforced by a collaboration with KT&G Corporation to explore consumer opportunities beyond nicotine-based products [1][8] Group 1: Strategic Initiatives - The partnership with KT&G aims to explore U.S. non-nicotine opportunities, aligning with Altria's diversification ambitions articulated in March 2023, combining KT&G's product expertise with Altria's U.S. commercialization capabilities [2] - Altria's initiative is not aimed at driving immediate growth but is part of a broader review of adjacent markets to diversify the business as cigarette volumes decline, emphasizing a structured approach within its "Optimize & Accelerate" framework [3][4] Group 2: Competitive Landscape - Philip Morris International Inc. is advancing its smoke-free transformation, with smoke-free products accounting for approximately 41% of total net revenues in Q3 2025, while also reassessing its wellness ambitions as a longer-term opportunity [5] - Turning Point Brands, Inc. is experiencing significant growth in its Modern Oral segment, with sales surging 627.6% year over year in Q3 2025, supported by increased sales investment and a new U.S. manufacturing facility planned for early 2026 [6] Group 3: Financial Performance - Altria's shares have increased by 9.3% over the past month, outperforming the industry's growth of 6.3% [7] - The company trades at a forward price-to-earnings ratio of 11.28X, lower than the industry average of 15.3X [9] - The Zacks Consensus Estimate for Altria's earnings has increased by 3 cents to $5.44 for the current financial year and by 2 cents to $5.58 for the next financial year [10]

分组1: Market Outlook - Wall Street strategists emphasize the importance of earnings growth for driving the stock market higher in 2026, with a favorable backdrop due to easing inflation and job growth [1] - Analysts predict solid earnings results for the S&P 500, with a forecasted profit growth of approximately 8.3% year-over-year for Q4, while FactSet analysts project growth could exceed 14% [2] - 79% of the 33 S&P 500 companies that reported Q4 results have surpassed analysts' EPS estimates, indicating strong performance [3] 分组2: Investment Opportunities - The Bank of New York Mellon Corporation (NYSE:BK) is highlighted as a profitable cheap stock, with a forward P/E of 14.14, profit margin of 27.59%, and net income of $5.31 billion, supported by 62 hedge fund holders [8] - Altria Group, Inc. (NYSE:MO) is also identified as a profitable cheap stock, featuring a forward P/E of 11.20, profit margin of 43.98%, and net income of $8.84 billion, with 64 hedge fund holders [12] - UBS has increased its price target for Altria Group from $63 to $67, maintaining a Buy rating, while noting manageable risks and potential for revenue growth in smoke-free products [12][13]

Core Viewpoint - Altria is expected to report quarterly earnings of $1.31 per share, a 1.6% increase year-over-year, with revenues projected at $5 billion, reflecting a 2% decrease compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has been revised downward by 0.4% over the past 30 days, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate that revenues net of excise taxes for Oral Tobacco Products will reach $673.99 million, representing a year-over-year increase of 1.7% [5]. - For Smokeable Products, revenues net of excise taxes are expected to be $4.29 billion, indicating a year-over-year decrease of 3% [5]. Operating Income Estimates - Reported Operating Companies Income for Oral Tobacco Products is projected at $466.35 million, up from $453.00 million a year ago [6]. - Adjusted Operating Companies Income for Smokeable Products is expected to be $2.67 billion, down from $2.71 billion in the same quarter last year [6]. Stock Performance - Over the past month, Altria's shares have increased by 7.5%, compared to a 0.2% change in the Zacks S&P 500 composite [6]. - Altria currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [6].

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Core Viewpoint - Altria Group is facing challenges as revenue declines despite high dividend returns and low stock prices, raising concerns about the sustainability of its dividend payments [1][12]. Financial Performance - Altria's stock price has increased since the beginning of 2024, with a current price-to-earnings (P/E) ratio of 12, leading to mixed investor sentiment regarding its valuation [2][11]. - The company has an annual dividend payout of $4.24 per share, yielding 6.8%, and has consistently raised its dividend since 2009 [5][10]. - Over the past 12 months, Altria generated approximately $9.2 billion in free cash flow, which covered $6.9 billion in dividend costs, leaving limited cash for other investments [8]. Strategic Missteps - Altria's attempts to diversify into e-cigarettes and cannabis have not yielded positive results, with significant investments in Juul and Cronos Group leading to substantial losses [7][8]. - The company's market cap for Cronos Group has fallen below $1 billion, indicating poor performance in its cannabis investment [8]. Market Position - Despite the appealing dividend yield, the company's revenue struggles due to declining smoking rates and failed business ventures may deter investors [12][13]. - The stock's low valuation may not be enough to attract investors unless there is a turnaround in business conditions [11][13].