What You Need To Know Ahead of Altria Group's Earnings Release

Valued at a market cap of $86.2 billion, Altria Group, Inc. (MO) operates in the tobacco and nicotine product sector. It manufactures and sells smokeable and oral tobacco products through its subsidiaries, including well-known brands like Marlboro, Copenhagen, and Black & Mild. The company is slated to announce its fiscal Q3 earnings results before the market opens on Thursday, Oct. 31.

Ahead of this event, analysts expect the tobacco company to report a profit of $1.36 per share, representing a 6.3% increase from $1.28 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in one of the past four quarters while missing on three other occasions. MO missed the consensus EPS estimate by a nearly 3% margin in the most recent quarter.

For fiscal 2024, analysts expect MO to report EPS of $5.11, marking a rise of 3.2% from $4.95 in fiscal 2023. In addition, EPS is expected to grow 3.7% year-over-year to $5.30 in fiscal 2025.

In 2024, shares of Altria Group surged 24.1%, outperforming the broader S&P 500 Index's ($SPX) 22.8% gain and the Consumer Staples Select Sector SPDR Fund's (XLP) 14.2% returns over the same period on a YTD basis.

Altria Group's stock fell on Jul. 31 due to disappointing Q2 earnings results. The company reported adjusted earnings of $1.31 per share and sales of $5.3 billion, both falling short of expectations. A 13% year-over-year drop in cigarette volumes led to a 4% decline in revenue from its smokable products segment, despite price hikes. This weaker performance resulted in a 3.1% drop in share price as investors grew concerned over the company's ongoing challenges in its core cigarette market. 

Analysts' consensus view on Altria Group stock remains cautious, with a "Hold" rating overall. Out of 10 analysts covering the stock, three recommend a "Strong Buy," five give a "Hold" rating, and two suggest a "Strong Sell" rating. As of writing, MO is trading above the average analyst price target of $48.88.

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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.