Altria (MO) Q3 2022 results
Altria Group signage is displayed on a monitor on the floor of the New York Stock Exchange.
Michael Nagle | Bloomberg | Getty Images
Cigarette maker Altria Group on Thursday reported third-quarter results that missed Wall Street estimates as its revenue tumbled.
Here’s what the company reported compared to what Wall Street expected, based on a Refinitiv analyst survey:
- Earnings per share: $1.28 adjusted vs $1.30 expected.
- Revenue: $5.41 billion vs $5.59 billion expected.
Altria shares were down 2% in premarket trading.
Cigarette maker Marlboro, which is striving to diversify its offerings as smoking rates decline in the United States, also announced a strategic partnership with Japan Tobacco to develop smokeless tobacco products ahead of its earnings release.
The move comes after Altria in July reduced the value of its $13 billion stake in struggling vaping company Juul to less than 5% of its original value amid a regulatory crackdown on products. . Although Altria retains a 35% stake in Juul, it exercised its option last month to be released from its non-compete obligations with the company.
“We are delighted to begin a new partnership with JT Group, an international tobacco leader,” said Billy Gifford, CEO of Altria. “We believe this relationship can accelerate harm reduction for adult smokers around the world.”
Last week, Altria also said Philip Morris International had agreed to pay $2.7 billion for the exclusive right to sell IQOS smokeless tobacco heaters in the United States.
For its third quarter, Altria reported revenue net of excise taxes of $5.41 billion, down 2% from a year ago. Its net income was $224 million for the period, or 12 cents per share. Excluding one-time items, he said he earned $1.28 per share.
For 2022, the company also cut its earnings per share forecast to between $4.81 and $4.89, representing growth of 4.5% to 6% from 2021.
It had previously forecast adjusted diluted earnings per share for the full year in the range of $4.79 to $4.93.
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