Core Insights - The primary goal of the Cash Flow Kingdom Income Portfolio is to achieve an overall yield in the range of 7% to 10% by combining various income streams to create a steady portfolio payout [1] - Altria Group, Inc. reported quarterly earnings that exceeded estimates, driven by strong growth from its product on! [1] Company Performance - Altria Group, Inc. beat earnings estimates on both revenue and earnings per share, indicating robust financial performance [1] - The company’s income stream remains consistent despite fluctuations in the portfolio's price [1] Investment Strategy - The Cash Flow Kingdom Income Portfolio focuses on generating attractive and steady income through diverse income sources [1] - The portfolio includes features such as access to a leader's personal income portfolio targeting yields over 6%, community chat, and a "Best Opportunities" list [1]

Core Viewpoint - Altria's stock declined due to disappointing guidance for 2025, with shares down 4.2% following the announcement [1] Financial Performance - Revenue for the quarter was flat at $5.97 billion, but excluding excise taxes, it increased by 1.6% to $5.11 billion, surpassing estimates of $5.05 billion [2] - Adjusted earnings per share rose by 9.3% to $1.29, aligning closely with analyst consensus of $1.28 [4] Market Dynamics - Cigarette sales continued to decline, with volumes dropping 8.8% to 16.6 billion sticks, and Marlboro's market share decreased by one percentage point to 41.3% [2] - The oral nicotine pouch product, on!, saw strong growth, reaching 43.9 million cans, although it was insufficient to boost the overall oral tobacco category [3] Future Outlook - Management's guidance for adjusted earnings per share growth of 2% to 5% (projected at $5.22 to $5.37) fell short of the analyst consensus of $5.35, contributing to the stock's decline [4] - CEO Billy Gifford emphasized 2024 as a pivotal year for the company, highlighting the potential for solid income growth and margin expansion from core tobacco businesses [4] Challenges - The company faces significant challenges, including competition from both legal and illegal vapes, as well as regulatory threats to the tobacco industry [5] - Despite a safe dividend yield of nearly 8%, weak earnings growth could jeopardize the company's ability to maintain dividend growth [5]

Core Insights - Altria reported revenue of $5.11 billion for the quarter ended December 2024, reflecting a 1.6% increase year-over-year and a surprise of +1.12% over the Zacks Consensus Estimate of $5.05 billion [1] - The company's EPS for the quarter was $1.29, up from $1.18 in the same quarter last year, surpassing the consensus estimate of $1.27 by +1.57% [1] Revenue Breakdown - Net revenue from Oral tobacco products was $663 million, exceeding the average estimate of $646.04 million, with a year-over-year increase of +2.5% [4] - Revenue from Smokeable Products reached $4.42 billion, slightly above the estimated $4.36 billion, marking a +1.7% change compared to the previous year [4] - Net revenue from All Other/Financial Services was reported at $19 million, which is a significant decline of -29.6% year-over-year, surpassing the average estimate of $17.50 million [4] Operating Income - Operating income for Oral tobacco products was $453 million, slightly above the average estimate of $446.59 million [4] - Adjusted operating income for Smokeable Products was reported at $2.71 billion, just below the estimated $2.72 billion [4] - The operating loss for All Other/Financial Services was -$123 million, worse than the average estimate of -$92 million [4] Stock Performance - Altria's shares have returned +0.7% over the past month, compared to a +1.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - Altria reported quarterly earnings of $1.29 per share, exceeding the Zacks Consensus Estimate of $1.27 per share, and showing an increase from $1.18 per share a year ago [1][2] Financial Performance - The company achieved revenues of $5.11 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.12% and up from $5.02 billion year-over-year [3] - Altria's earnings surprise was 1.57%, and it has surpassed consensus EPS estimates two times over the last four quarters [2][3] Stock Performance and Outlook - Altria shares have increased by approximately 0.7% since the beginning of the year, while the S&P 500 has gained 2.7% [4] - The company's earnings outlook is favorable, with a current consensus EPS estimate of $1.21 for the upcoming quarter and $5.35 for the current fiscal year [8] Industry Context - The Tobacco industry, to which Altria belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a strong performance potential [9] - Turning Point Brands, another company in the same industry, is expected to report a quarterly earnings decline of 17.7% year-over-year, with revenues projected at $102.25 million, up 5.3% from the previous year [10]

Altria's Fourth-Quarter and Full-Year 2024 Earnings Conference Call January 30, 2025 1 | ALCS | Q4 2024 | 1.30.25 | For Investor Purposes ONLY Safe Harbor Statement 2 | ALCS | Q4 2024 | 1.30.25 | For Investor Purposes ONLY 3 | ALCS | Q4 2024 | 1.30.25 | For Investor Purposes ONLY Strong Financial Results and Significant Cash Returns $4.95 $5.12 FY 2023 FY 2024 +3.4% $6.3 $8.1 $8.4 $7.8 $10.2 2020 2021 2022 2023 2024 ($ in billions) *For reconciliations of non-GAAP to GAAP measures visit altria.com. 4 | ALCS ...

Financial Performance - Altria reported Q4 2024 net revenues of $5,974 million, unchanged from Q4 2023, and full-year 2024 net revenues of $24,018 million, a decrease of 1.9% compared to 2023[2]. - Adjusted diluted EPS for Q4 2024 was $1.29, an increase of 9.3%, while full-year adjusted diluted EPS was $5.12, up 3.4% from 2023[2][25]. - Net revenues were essentially unchanged at $6.0 billion, with revenues net of excise taxes increasing 1.6% to $5.1 billion[5]. - Reported diluted EPS increased 54.3% to $1.79, driven by favorable income tax items and fewer shares outstanding[5]. - For the full-year 2024, net pre-tax income of $2.5 billion (or $1.08 per share) was recorded from acquisition-related items, mainly from a pre-tax gain of $2.7 billion on the assignment of IQOS commercialization rights[29]. - Net revenues for Q4 2024 were $5,974 million, a slight decrease of 0.02% compared to $5,975 million in Q4 2023[77]. - Net earnings for Q4 2024 rose significantly by 47.5% to $3,039 million, compared to $2,060 million in Q4 2023[77]. - For the full year 2024, net revenues were $24,018 million, a decrease of 1.9% from $24,483 million in 2023[81]. - Net earnings for the full year 2024 increased by 38.5% to $11,264 million, compared to $8,130 million in 2023[81]. - Diluted earnings per share for the full year 2024 rose by 43.1% to $6.54, up from $4.57 in 2023[81]. Share Repurchase and Debt Management - Altria completed a $3.4 billion share repurchase program in 2024, repurchasing 73.5 million shares at an average price of $46.26[9]. - The company announced a new $1 billion share repurchase program expected to be completed by December 31, 2025[9]. - The company aims to achieve a debt-to-Consolidated EBITDA ratio of approximately 2.0x, with a current ratio of 2.1x[12]. - Total debt as of December 31, 2024, was $24,926 million, down from $26,233 million in 2023[97]. - Consolidated EBITDA for 2024 was $12,157 million, with a total debt to consolidated EBITDA ratio of 2.1[102]. Product Performance and Market Trends - NJOY consumables reported shipment volume increased by 15.3% in Q4 2024 to 12.8 million units, while devices saw a 22.2% increase to 1.1 million units[9]. - Total U.S. smoke-free net revenues in 2024 were $2.8 billion, with innovative smoke-free products contributing $0.3 billion[12]. - Domestic cigarette shipment volume decreased 10.2% for the full year, primarily due to the industry's decline rate and retail share losses[51]. - Marlboro's retail share of the total cigarette category was 41.3%, a decrease of 1.0 percentage point compared to the prior year[52]. - The oral tobacco products segment's retail share decreased to 36.8% in Q4 2024, down from 39.9% in Q4 2023[65]. - The total U.S. oral tobacco category share for on! nicotine pouches increased to 8.9% in Q4 2024, up by 2.0 percentage points year-over-year[65]. - The U.S. nicotine pouch category grew to 45.7% of the U.S. oral tobacco category, an increase of 9.6 percentage points compared to the previous year[65]. Operating Income and Costs - Altria's total reported OCI margin for 2024 was 58.0%, while the total adjusted OCI margin was 60.3%[12]. - Operating companies income for Q4 2024 was $2,968 million, a 1.3% increase from $2,929 million in Q4 2023[77]. - The company reported a significant increase in marketing, administration, and research costs, which rose to $601 million in Q4 2024 from $570 million in Q4 2023[77]. - Operating companies income for 2024 was $11,856 million, down 3.8% from $12,318 million in 2023[83]. Tax and Impairment Items - Income tax items for the full-year 2024 amounted to $969 million (or $0.56 per share), primarily related to the reversal of an unrecognized tax benefit[37]. - For the full-year 2023, a non-cash, pre-tax loss of $250 million (or $0.14 per share) was recorded related to the disposition of JUUL equity securities[32]. - The company incurred asset impairment, exit, and implementation costs of $422 million in 2024[83]. - The company reported a loss on the sale of IQOS System commercialization rights amounting to $2,700 million[102]. Adjusted Earnings and Special Items - Adjusted net earnings for 2024 were $8,821 million, reflecting a slight decrease of 0.01% from $8,822 million in 2023[95]. - Acquisition, disposition, and integration-related items negatively impacted EPS by $1.08 in 2024[106]. - Income tax items reduced EPS by $0.56 in 2024 compared to a reduction of $0.40 in 2022[106]. - JUUL changes in fair value contributed $0.81 to EPS in 2022, with no impact in 2024[106]. - Asset impairment, exit, and implementation costs added $0.18 to EPS in 2024, with no prior impact[106].

Group 1 - Altria is currently outperforming its Consumer Staples peers with a year-to-date return of 2.2%, while the average return for the sector is -0.6% [4] - The Zacks Rank for Altria is 2 (Buy), indicating a positive earnings outlook as the consensus estimate for full-year earnings has increased by 0.9% over the past quarter [3] - Altria belongs to the Tobacco industry, which has an average year-to-date gain of 39.1%, suggesting that Altria is slightly underperforming its industry [5] Group 2 - Simply Good Foods, another stock in the Consumer Staples sector, has a year-to-date return of 0.9% and also holds a Zacks Rank of 2 (Buy) [4][5] - The Food - Confectionery industry, where Simply Good Foods is categorized, has seen a decline of -15.6% since the beginning of the year [6] - Investors should monitor both Altria and Simply Good Foods for their potential to maintain solid performance in the Consumer Staples sector [6]

Earnings Report and Expectations - Altria Group Inc is scheduled to report earnings for the December quarter pre-market on January 30th [1] - Consensus expectations for revenue and net income are set at $5 04 billion and $2 17 billion respectively [1] - Expectations for revenue and net income are viewed as reasonable [1] Analyst Background - The analyst has experience as an investment analyst for a major BB-Bank and as a private equity consultant for MBB [1] - The analyst is currently working towards the CFA charter having completed levels I and II [1] - The analyst has a passion for risk-assets including growth contrarian and emerging market investments [1]

Altria Group, Inc. (MO) is likely to register growth in top and bottom-lines when it reports fourth-quarter 2024 earnings on Jan. 30. Although the Zacks Consensus Estimate for quarterly earnings has moved down a couple of cents in the past seven days to $1.27 per share, the projection indicates growth of 7.6% from the year-ago quarter’s reported figure.The consensus mark for 2024 earnings is pegged at $5.13 per share, suggesting a 3.6% increase from the prior-year reported figure. MO has a trailing four-qua ...

Altria (MO 1.64%) and Costco (COST -0.26%) are pretty different companies, but they share a subtle similarity. What is that similarity? Extremely loyal customers. But there are very real issues for investors to consider with each company before buying in. Here's what you need to know.What does Altria do?Altria's biggest business is selling high-end cigarettes under the iconic Marlboro brand. After spinning off its foreign operations into Philip Morris International (NYSE: PM), Altria only operates in the U. ...