Summary
Altria Group, Inc. (MO) reported strong financial results for the nine months ended September 30, 2017, with net earnings attributable to Altria Group, Inc. increasing by 32.6% to $5,256 million, and diluted EPS growing by 34.7% to $2.72 compared to the same period in 2016. This performance was driven by higher operating income across its key segments, particularly smokeable products, and favorable tax items, including a significant benefit from the release of a valuation allowance related to foreign tax credit carryforwards and the settlement of an IRS audit. The company also continued its commitment to returning capital to shareholders, increasing its quarterly dividend by 8.2% and actively repurchasing its own stock under an expanded program. Despite a slight decrease in net revenues due to lower shipment volumes in the smokeable products segment, which was impacted by excise tax increases in California and competitive activity, Altria demonstrated effective cost management and pricing strategies. The smokeless products segment showed growth in net revenues and operating companies income. The company also reaffirmed its full-year 2017 adjusted diluted EPS growth forecast, underscoring management's confidence in its operational execution and strategic initiatives amidst a challenging regulatory and economic environment.
Financial Highlights
47 data points| Revenue | $6.73B |
| Cost of Revenue | $1.94B |
| Gross Profit | $3.17B |
| Operating Income | $2.59B |
| Net Income | $1.87B |
| EPS (Basic) | $0.97 |
| Shares Outstanding (Basic) | 1.92B |
Key Highlights
- 1Net earnings attributable to Altria Group, Inc. increased by 32.6% to $5,256 million for the nine months ended September 30, 2017, compared to the prior year period.
- 2Diluted EPS grew by 34.7% to $2.72 for the nine months ended September 30, 2017, compared to $2.02 in the prior year period.
- 3The company increased its quarterly dividend by 8.2% to $0.66 per share, reflecting a commitment to shareholder returns.
- 4Total debt remained stable at $13.9 billion, with strong liquidity maintained through its credit agreement and commercial paper program.
- 5The smokeable products segment's operating companies income increased by 10.2% for the nine months ended September 30, 2017, driven by higher pricing and lower costs.
- 6The smokeless products segment saw growth in net revenues and operating companies income, primarily due to higher pricing, despite a slight decline in shipment volume.
- 7Altria reaffirmed its full-year 2017 adjusted diluted EPS growth guidance of 7.5% to 9.5% over 2016.