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Altria Group (MO) Third Quarter Earnings Miss Forecasts; Revenue Declines But Beats Market Expectations

Thursday, October 28, 2021 09:18 AM | Carl Pettit
Altria Group (MO) Third Quarter Earnings Miss Forecasts; Revenue Declines But Beats Market Expectations

On Oct. 28, 2021, Altria Group (MO) reported its third-quarter earnings for 2021. Revenue decreased, although did better than market estimates. Meanwhile, earnings came in below analysts' third quarter projections.

Pre-market today, MO stock fell 1.81%.

“Difficult” Year-Over-Year Comparisons

According to CEO Billy Gifford, the tobacco concern’s “businesses performed well against difficult year-over-year comparisons…” Gifford seemed encouraged by substantial retail share growth for on! (nicotine pouches) during the third quarter. The U.S. oral tobacco category share for on! increased to 3.0% during the quarter, which is an increase of 1.9 percentage points from the end of 2020.

Share Repurchase Program

Altria's board of directors authorized the expansion of the company's existing $2 billion share repurchase program to $3.5 billion, which is slated for completion by Dec. 31, 2022. “Following the expansion of the share repurchase program, Altria has approximately $2.5 billion remaining in the $3.5 billion share repurchase program.”

Narrowly Raising Guidance

Altria Group also announced it’s raising the lower-end of its full-year 2021 guidance, expecting to now deliver “adjusted diluted EPS in a range of $4.58 to $4.62,” which “represents a growth rate of 5% to 6% from a $4.36 base in 2020."

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