Altria Group, Inc. (NYSE:MO) shares fell Thursday after the company posted a slight adjusted profit miss while revenue topped expectations for the fourth quarter.
Smokeable products weighed on results as shipments slipped and promotional spending climbed, even as pricing and oral tobacco helped.
The company reported fourth-quarter adjusted earnings per share of $1.30, missing the Street view of $1.32.
Quarterly sales of $5.846 billion (down 2.1% year over year) beat the analyst consensus estimate of $5.028 billion.
Lower net revenues in the smokeable products segment primarily drove lower sales. Revenues net of excise taxes decreased 0.5% to $5.1 billion.
Quarterly Metrics
Net revenues from smokeable yields fell 2.7% on lower shipments and higher promotions, partly offset by pricing; revenue excluding excise taxes slipped 1.1%.
Marlboro retail share of the total cigarette category was 39.8%, a decrease of 1.5 share points versus the prior year and 0.6 share points sequentially.
Marlboro’s share of the premium segment was 59.2%, a decrease of 0.1 share point versus the prior year and 0.4 share points sequentially.
Oral tobacco net revenues rose 2.0% on pricing, partly offset by lower shipments and an unfavorable mix shift; revenue excluding excise taxes increased 2.9%.
Gross profit in the quarter under review increased 0.7% to $3.631 billion. Operating income fell 40.9% year over year to $1.753 billion.
The company exited the quarter with cash and equivalents worth $4.474 billion.
Outlook
Altria Group expects fiscal 2026 adjusted earnings of $5.56 to $5.72 per share, compared with the $5.58 analyst estimate.
The firm said it expects 2026 adjusted diluted EPS growth to be weighted to the second half of the year, reflecting a progressive increase in cigarette import and export activity over the course of the year.
Altria expects its 2026 adjusted effective tax rate to range from 22.5% to 23.5%, with capital spending of $300 million to $375 million and depreciation and amortization expenses of about $225 million.
MO Price Action: Altria Group shares were down 3.19% at $61.11 at the time of publication on Thursday, according to Benzinga Pro data.
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