Altria Group, Inc. (MO), headquartered in Richmond, Virginia, is a leading producer and seller of smokeable and oral tobacco products. Valued at $87 billion by market cap, the company’s product portfolio includes cigarettes, large cigars and pipe tobacco, e-vapor products, and combustible and smoke-free products under iconic brands such as Marlboro, Copenhagen, Skoal, and NJOY. The leading tobacco company is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Thursday, Jan. 30.
Ahead of the event, analysts expect MO to report a profit of $1.28 per share on a diluted basis, up 8.5% from $1.18 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect MO to report EPS of $5.12, up 3.4% from $4.95 in fiscal 2023. Its EPS is expected to rise 4.1% year over year to $5.33 in fiscal 2025.
MO stock has outperformed the S&P 500’s ($SPX) 22.1% gains over the past 52 weeks, with shares up 24.2% during this period. Similarly, it outperformed the Consumer Staples Select Sector SPDR Fund’s (XLP) 5.1% gains over the same time frame.
Altria's outperformance stems from its investments in smoke-free alternatives targeting doubled sales, cost-saving initiatives improving efficiency, along with global expansion, and focus on oral tobacco and nicotine pouches markets. Its strong distribution network has driven rapid growth in the NJOY vape business, ensuring future growth alongside its profitable cigarette segment.
On Oct. 31, MO shares closed up more than 7% after reporting its Q3 results. Its revenue was $6.3 billion, down marginally year over year. The company’s adjusted EPS of $1.38, surpassed analyst estimates of $1.36. MO expects full-year adjusted EPS to be between $5.07 and $5.15.
Analysts’ consensus opinion on MO stock is cautious, with a “Hold” rating overall. Out of 10 analysts covering the stock, four advise a “Strong Buy” rating, four give a “Hold,” and two recommend a “Strong Sell.” MO’s average analyst price target is $54.38, indicating a potential upside of 5.9% from the current levels.
