A month has gone by since the last earnings report for Altria (MO). Shares have added about 9.5% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Altria due for a pullback? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Altria’s Q3 Earnings Surpass Estimates on Solid Pricing
Altria released third-quarter 2020 results, wherein both earnings and revenues beat the Zacks Consensus Estimate and the latter climbed year over year. Higher pricing in the smokeable products and oral tobacco product segments drove the results. Moreover, based on its year-to-date performance, among other factors, Altria narrowed its adjusted earnings per share guidance for 2020 by lifting the lower end of its previously guided range. Also, the company updated its guidance for reported domestic cigarette industry volumes.
Quarter in Detail
Adjusted earnings came in at $1.19 per share, which remained flat year over year but beat the Zacks Consensus Estimate of $1.15. Increased adjusted operating companies income (OCI) in the smokeable products segment was offset by elevated income taxes and decreased adjusted earnings from the company’s equity investment in AB InBev and Cronos
Net revenues advanced 3.9% year over year to $7,123 million. Revenues, after deducting excise taxes, grew 4.9% to $5,678 million. The consensus mark was $5,521 million. Revenues were aided by increased revenues