Altria Q4 Earnings Expectations Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Source: seekingalpha
- Earnings Forecast: Altria is set to announce its Q4 earnings on January 29, with a consensus EPS estimate of $1.32, reflecting a 2.3% year-over-year increase, while revenue is expected to decline by 1.4% to $5.03 billion, indicating continued reliance on traditional cigarettes.
- Competitive Pressure: In contrast, Philip Morris is projected to report earnings of $1.70 per share and revenue of $10.40 billion, showcasing strong growth and high margins in its smoke-free product portfolio, highlighting Altria's challenges in this segment.
- Market Dynamics: Philip Morris's ZYN oral pouches have gained significant traction, becoming the most popular smoke-free product in the U.S. and ranking among the top ten brands in convenience stores, indicating a shift towards mainstream acceptance and increasing competitive pressure on Altria.
- Stock Performance: Year-to-date, Philip Morris shares have risen by 11.4%, while Altria has gained 10.8%, both outperforming the S&P 500's 1.94% increase, reflecting differing market expectations for the two companies' future performance.
Analyst Views on MO
Wall Street analysts forecast MO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MO is 65.60 USD with a low forecast of 57.00 USD and a high forecast of 72.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
4 Buy
1 Hold
1 Sell
Moderate Buy
Current: 63.620
Low
57.00
Averages
65.60
High
72.00
Current: 63.620
Low
57.00
Averages
65.60
High
72.00
About MO
Altria Group, Inc. operates a portfolio of tobacco products for United States tobacco consumers aged 21+. Its segments include smokeable products and oral tobacco products. The smokeable products segment consists of combustible cigarettes and machine-made large cigars. The oral tobacco products segment includes moist smokeless tobacco (MST) products and oral nicotine pouches. Its wholly owned subsidiaries include manufacturers of both combustible and smoke-free products. In combustibles, it owns Philip Morris USA Inc. (PM USA), and John Middleton Co. (Middleton), which are cigarette manufacturers. Its smoke-free portfolio includes ownership of U.S. Smokeless Tobacco Company LLC (USSTC), a global MST manufacturer, Helix Innovations LLC (Helix), a manufacturer of oral nicotine pouches, and NJOY, LLC (NJOY), an e-vapor manufacturer with a commercialized product portfolio. The brand portfolios of its operating companies include Marlboro, Black & Mild, Copenhagen, Skoal, on! and NJOY.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
