Altria Earnings: MO Stock Drops 2% Despite Q3 Beat

Altria (NYSE:MO) earnings for the tobacco company’s third quarter of 2019 have MO stock falling on Thursday. This is despite its adjusted EPS of $1.19, which beats out Wall Street’s estimate of $1.15. Revenue of $6.86 billion also easily comes in above analysts’ estimates of $5.34 billion for the quarter, but MO stock is still falling.

Altria Earnings: MO Stock Drops 2% Despite Q3 Beat

Source: Kristi Blokhin /

Let’s take a closer look at the Altria earnings report for Q3 2019.

  • Adjusted EPS for the quarter is up 10.20% from $1.08 in the same period of the year prior.
  • Revenue is largely unchanged YoY from $6.84 billion.
  • Operating income of $2.94 billion is 15.10% better than $2.56 billion in the third quarter of 2018.
  • The Altria earnings report also includes a change from net income in Q3 2018 to a net loss for the current quarter.
  • It’s also worth mentioning that MO saw a non-cash pre-tax impairment charge of $4.5 billion during the quarter.
  • This is from its investment in JUUL.

Howard Willard, Chairman and CEO of Altria, says this about the most recent MO stock earnings.

“We continue to believe the evolution of the tobacco industry represents a significant opportunity for Altria. We marked major milestones in our transformation journey this year, including launching IQOS and completing the on! transaction. We believe that, with current adult smoker trends and e-vapor disruption, it’s an opportune time to expand the availability of these options.”

The current Altria earnings report reveals that the company continues to expect adjusted per-share earnings between $4.19 and $4.27 for 2019. The low end of that guidance matches Wall Street’s estimate for the year.

MO stock was down 2.13% as of Thursday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

©2022 InvestorPlace Media, LLC