Tobacco company Altria (NYSE:MO) will be reporting results tomorrow before the bell. Here’s what you need to know.
Altria beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $5.11 billion, up 1.6% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ EPS estimates but a miss of analysts’ EBITDA estimates.
This quarter, analysts are expecting Altria’s revenue to decline 1.7% year on year to $4.64 billion, in line with its flat revenue from the same quarter last year. Adjusted earnings are expected to come in at $1.19 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Altria has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Altria’s peers in the beverages, alcohol, and tobacco segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Boston Beer delivered year-on-year revenue growth of 6.5%, beating analysts’ expectations by 4.1%, and Philip Morris reported revenues up 5.8%, topping estimates by 2.6%. Boston Beer traded up 2.8% following the results while Philip Morris was also up 3.7%.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the beverages, alcohol, and tobacco stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.2% on average over the last month. Altria is down 2.7% during the same time and is heading into earnings with an average analyst price target of $57.37 (compared to the current share price of $58.40).
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