Altria Beats Earnings, Revenue Forecasts

by Christopher Freeburn | July 24, 2012 10:10 am

Altria Group (NYSE:MO[1]) announced this morning that its second-quarter net income[2] jumped to $1.23 billion, compared to $444 million during the same period last year when it recorded a $627 million charge against earnings.

Excluding excise taxes, revenue during the quarter rose 14% over last year to $4.6 billion, topping Wall Street predictions of $4.48 billion, the Associated Press noted.

Adjusted EPS came in at 59 cents a share, which also exceeded analysts, who forecast 57 cents.

Shares of Altria inched up less than 1% in Tuesday morning trading.

The company said it anticipated earnings of between $2.19 and $2.23 a share for the year. Wall Street is looking for earnings of $2.21 a share.

While the company saw increased sales of its discount brand cigarettes, those were countered by declines in its higher-priced brands, leaving cigarette volume for the quarter almost unchanged from a year ago at 36.2 billion. Marlboro increased its market share slightly to 42.9% of the domestic market.

Altria said that it had spent $66 million during the quarter to repurchase 2 million shares. The company had previously announced a $1 billion share repurchase program, which has $312 million left to spend before the end of this year.

Last week, Philip Morris International (NYSE:PM[3]) reported second-quarter earnings and revenue[4] that narrowly topped analysts’ estimates.

Endnotes:
  1. MO: http://studio-5.financialcontent.com/investplace/quote?Symbol=MO
  2. announced this morning that its second-quarter net income: http://hosted.ap.org/dynamic/stories/U/US_EARNS_ALTRIA_GROUP?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-07-24-07-35-47
  3. PM: http://studio-5.financialcontent.com/investplace/quote?Symbol=PM
  4. reported second-quarter earnings and revenue: http://investorplace.com/2012/07/philip-morris-lower-q2-profits-top-estimates/

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