Altria Earnings Cheat Sheet: Four Quarters of Rising Profit Now Broken
Rising revenue was not enough for S&P 500 (NYSE:SPY) component Altria Group, Inc. (NYSE:MO) as the cigarette company saw profit fall in the second quarter. Altria Group Inc. manufactures and sells cigarettes and tobacco products as well as maintaining a portfolio of leveraged and direct finance leases.
Altria Group Earnings Cheat Sheet for the Second Quarter
Results: Net income for the cigarette company fell to $444 million (21 cents per share) vs. $1.04 billion (50 cents per share) a year earlier. This is a decline of 57.4% from the year earlier quarter.
Revenue: Fell 5.9% to $5.92 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: MO reported adjusted net income of 53 cents per share. By that measure, the company fell in line with the mean estimate of 53 cents per share. It beat the average revenue estimate of $4.43 billion.
Quoting Management: “Altria continued to deliver solid adjusted EPS growth in the second quarter of 2011,” said Michael E. Szymanczyk, Chairman and Chief Executive Officer of Altria. “Our adjusted EPS growth reflects the strong operating margins and retail share performance of our tobacco companies’ premium brands.”
Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the first quarter, net income rose 15.3% from the year earlier, while the figure increased 26.8% in the fourth quarter of the last fiscal year, 28.2% in the third quarter of the last fiscal year and 3.2% in the second quarter of the last fiscal year.
The company has now fallen in line with estimates for the past two quarters. It reported net income of 44 cents in the first quarter and net income of 44 cents in the fourth quarter of the last fiscal year.
Competitors to Watch: Reynolds American, Inc. (NYSE:RAI), Lorillard Inc. (NYSE:LO), Philip Morris Intl. Inc. (NYSE:PM), Vector Group Ltd. (NYSE:VGR), Star Scientific, Inc. (NASDAQ:CIGX), Imperial Tobacco Group PLC (ITYBY), British American Tobacco (AMEX:BTI), Alliance One Intl., Inc. (NYSE:AOI), and Universal Corporation (NYSE:UVV).
(Source: Xignite Financials)