Altria Group Earnings: Here’s Why Investors are Buying Shares Now

Altria Group Inc. (NYSE:MO) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.2%.

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Altria Group Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 10.2% to $0.54 in the quarter versus EPS of $0.49 in the year-earlier quarter.

Revenue: Decreased 0.53% to $3.97 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Altria Group Inc. reported adjusted EPS income of $0.54 per share. By that measure, the company beat the mean analyst estimate of $0.53. It missed the average revenue estimate of $4.04 billion.

Quoting Management: “Altria’s diverse business model delivered strong financial results for the first quarter, as the company increased its adjusted diluted earnings per share by 10.2%,” said Marty Barrington, Chairman and Chief Executive Officer of Altria. “Higher pricing contributed to adjusted operating companies income and margin growth in all three of our reportable segments. Higher earnings from our equity investment in SABMiller and lower interest expense also drove adjusted EPS growth.”

Key Stats (on next page)…

Revenue decreased 10.92% from $4.46 billion in the previous quarter. EPS decreased 1.82% from $0.55 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.63 and has not changed. For the current year, the average estimate has moved up from a profit of $2.38 to a profit of $2.39 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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