Altria Group signage is displayed on a monitor on the floor of the New York Stock Exchange.
Michael Nagle | Bloomberg | Getty Images
Cigarette maker Altria Group on Thursday reported third-quarter earnings that missed Wall Street estimates as its revenue fell.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings┬аper share: $1.28 adjusted vs. $1.30 expected.
- Revenue: $5.41 billion vs. $5.59 billion expected.
Shares of Altria were down 2% in pre-market trading.
The maker of Marlboro cigarettes, which has been working to diversify its offerings as smoking rates decline in the U.S., also announced a strategic partnership with Japan Tobacco to develop smoke-free tobacco products ahead of its earnings release.
The move comes after Altria in July slashed the value of its $13 billion stake in troubled vaping company Juul to less than 5% of its original value amid a regulatory crackdown on the products. Although Altria retains a 35% stake in Juul, it exercised its option last month to be released from its non-compete obligations with the company.
“We are excited to begin a new partnership with JT Group, a leading international tobacco company,” said Billy Gifford, Altria’s chief executive officer. “We believe this relationship can accelerate harm reduction for adult smokers across the globe.”
Last week, ┬аAltria also said that Philip Morris International had agreed to pay $2.7 billion for the exclusive right to sell IQOS smokeless tobacco heating devices in the United States.
For its third quarter, Altria reported revenue net of excise taxes of $5.41 billion, a decline of 2% from a year ago. Its net income was $224 million for the period, or 12 cents per share. Excluding one-time items, it said it earned $1.28 per share.
For 2022, the company also narrowed its earnings per share guidance to be in the range of $4.81 to $4.89, representing a growth of 4.5% to 6% from 2021.
It had previously forecast full-year adjusted diluted earnings per share in a range of $4.79 to $4.93.
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