Shares of Altria Group, Inc. (NYSE: MO) have been down over 1% on Monday. The inventory has gained over 10% previously three months. The tobacco firm is scheduled to report its earnings outcomes for the primary quarter of 2025 on Tuesday, April 29, earlier than market open. Right here’s a take a look at what to anticipate from the earnings report:
Income
Analysts are projecting income of $4.62 billion for Altria in Q1 2025. The corporate’s web revenues decreased 2.5% year-over-year to $5.57 billion in Q1 2024 and remained flat YoY at $5.97 billion in This fall 2024.
Earnings
The consensus estimate for earnings per share in Q1 2025 is $1.18, which compares to $1.15 reported within the year-ago quarter. In This fall 2024, adjusted EPS rose over 9% YoY to $1.29.
Factors to notice
Altria is anticipated to learn from secure demand for nicotine. A rising variety of nicotine shoppers are transferring in direction of smoke-free options, with significantly excessive demand within the e-vapor and oral tobacco classes. The corporate is now seeing smoke-free quantity progress greater than offset cigarette business declines. This growing adoption of smoke-free merchandise is anticipated to spice up its smoke-free enterprise.
E-vapor is the most important smoke-free class that buyers are choosing in transitioning away from cigarettes. Altria is anticipated to achieve from the sturdy efficiency of its product NJOY on this class. In This fall 2024, NJOY consumables cargo quantity elevated over 15% whereas NJOY units cargo quantity elevated over 22% versus the earlier yr.
The corporate can also be seeing progress within the oral tobacco class, led by nicotine pouches. Final quarter, income from oral tobacco merchandise grew practically 3% YoY. Inside nicotine pouches, on! continues to see progress. In This fall, on!’s quantity grew greater than 40% YoY.
Altria’s smokeable merchandise phase continues to face challenges from declines in home cigarette cargo quantity. The cigarette business is dealing with headwinds from financial pressures on shoppers and an increase in illicit e-vapor merchandise. Regardless of these pressures, the corporate’s Marlboro model maintained its management place.
