Valued at a market cap of $86.2 billion, Altria Group, Inc. (MO) operates in the tobacco and nicotine product sector. It manufactures and sells smokeable and oral tobacco products through its subsidiaries, including well-known brands like Marlboro, Copenhagen, and Black & Mild. The company is slated to announce its fiscal Q3 earnings results before the market opens on Thursday, Oct. 31.
Ahead of this event, analysts expect the tobacco company to report a profit of $1.36 per share, representing a 6.3% increase from $1.28 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in one of the past four quarters while missing on three other occasions. MO missed the consensus EPS estimate by a nearly 3% margin in the most recent quarter.
For fiscal 2024, analysts expect MO to report EPS of $5.11, marking a rise of 3.2% from $4.95 in fiscal 2023. In addition, EPS is expected to grow 3.7% year-over-year to $5.30 in fiscal 2025.
In 2024, shares of Altria Group surged 24.1%, outperforming the broader S&P 500 Index's ($SPX) 22.8% gain and the Consumer Staples Select Sector SPDR Fund's (XLP) 14.2% returns over the same period on a YTD basis.
Altria Group's stock fell on Jul. 31 due to disappointing Q2 earnings results. The company reported adjusted earnings of $1.31 per share and sales of $5.3 billion, both falling short of expectations. A 13% year-over-year drop in cigarette volumes led to a 4% decline in revenue from its smokable products segment, despite price hikes. This weaker performance resulted in a 3.1% drop in share price as investors grew concerned over the company's ongoing challenges in its core cigarette market.
Analysts' consensus view on Altria Group stock remains cautious, with a "Hold" rating overall. Out of 10 analysts covering the stock, three recommend a "Strong Buy," five give a "Hold" rating, and two suggest a "Strong Sell" rating. As of writing, MO is trading above the average analyst price target of $48.88.
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