Summary
Altria Group, Inc. reported strong financial performance for the nine months ended September 30, 2018, with net earnings attributable to Altria increasing by 8.7% to $5,713 million and diluted EPS rising by 11.0% to $3.02 compared to the same period in the prior year. This growth was driven by a lower effective tax rate following the Tax Cuts and Jobs Act and an increase in earnings from its equity investment in AB InBev, which offset a prior year gain from the AB InBev/SABMiller business combination. The company also continued its commitment to shareholder returns, increasing its quarterly dividend by 21.2% year-to-date and repurchasing shares under its new $2.0 billion share repurchase program. Despite a slight decline in net revenues, primarily due to lower shipment volumes in the smokeable products segment, Altria demonstrated robust pricing strategies and cost management. The smokeless products segment showed growth in both net revenues and operating companies income. While the company faces ongoing challenges including regulatory pressures, litigation, and evolving consumer preferences, its strategic investments and focus on core brands position it to navigate these complexities. Investors will likely focus on the company's ability to continue growing dividends and managing its significant debt load and litigation risks.
Financial Highlights
48 data points| Revenue | $6.84B |
| Cost of Revenue | $2.04B |
| Gross Profit | $3.25B |
| Operating Income | $2.56B |
| Net Income | $1.94B |
| EPS (Basic) | $1.03 |
| EPS (Diluted) | $1.03 |
| Shares Outstanding (Basic) | 1.88B |
Key Highlights
- 1Net earnings attributable to Altria increased by 8.7% to $5,713 million for the nine months ended September 30, 2018.
- 2Diluted EPS attributable to Altria grew by 11.0% to $3.02 for the nine months ended September 30, 2018.
- 3The company raised its quarterly dividend by 21.2% year-to-date, with the current annualized rate at $3.20 per share.
- 4Net revenues decreased slightly by 1.2% to $19,250 million for the nine months ended September 30, 2018, mainly due to lower volumes in the smokeable products segment.
- 5Operating companies income for the smokeable products segment remained stable, while the smokeless products segment saw a 15.3% increase in operating companies income.
- 6Altria repurchased $1,317 million of its common stock during the first nine months of 2018 under its share repurchase programs.
- 7The company's equity investment in AB InBev, though declining in fair value, was deemed temporarily impaired, with no impairment loss recognized.