Shares of Altria Group, Inc. (NYSE: MO) have been down over 1% on Tuesday. The inventory has gained 5% over the previous three months. The tobacco large is slated to report its fourth quarter 2024 earnings outcomes on Thursday, January 30, earlier than market open. Right here’s a have a look at what to anticipate from the earnings report:
Income
Analysts are projecting income of $5.04 billion for Altria in This autumn 2024, which compares to income of $5.02 billion reported in the identical quarter a yr in the past. Within the third quarter of 2024, revenues rose 1% year-over-year to $5.34 billion.
Earnings
The consensus goal for earnings per share in This autumn 2024 is $1.28, which compares to adjusted EPS of $1.18 reported in This autumn 2023. In Q3 2024, adjusted EPS elevated 8% YoY to $1.38.
Factors to notice
Altria is making good progress on its smoke-free transformation. Its smoke-free enterprise is benefiting from positive factors in NJOY vaping gadgets and on! nicotine pouches. Within the third quarter of 2024, NJOY consumables cargo quantity elevated 15.6% YoY to 10.4 million models whereas its gadget cargo quantity practically tripled to 1.1 million models. Nonetheless, within the e-vapor class, the rise in utilization of illicit disposable merchandise stays a problem.
Altria is anticipated to learn from development in its oral tobacco merchandise enterprise. In Q3, revenues on this section grew over 5%, pushed by increased pricing and cargo volumes. Within the US, nicotine pouches make up practically 44% of the oral tobacco product class. On! nicotine pouches are demonstrating robust development. In Q3, on! cargo quantity grew by 46% to just about 42 million cans.
The corporate continues to face challenges in its smokeable merchandise enterprise as cigarette cargo volumes proceed to lower. In Q3, home cigarette cargo quantity fell practically 9%. The trade is dealing with pressures from development in illicit e-vapor merchandise and continued discretionary earnings pressures on customers. These headwinds are more likely to have endured within the fourth quarter as properly.