Moving Beyond Smoking - Altria Closes NJOY Buyout, Reduces FY23 Adj. EPS Outlook - Altria Group (NYSE:MO)

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Altria Group Inc MO completed the previously announced acquisition of NJOY Holdings, Inc.
The $2.75 billion buyout included an additional $500 million in cash payments, contingent upon regulatory outcomes concerning certain NJOY products.
Starting Q2 2023, Altria will report NJOY under "All Other" category.
The company expects a final payment of $1.7 billion (plus interest) from Philip Morris International Inc PM by July 15, 2023, as a part of the transition agreement for the IQOS Tobacco Heating System.
Altria expects the buyout to be accretive to cash flow in 2025 and adjusted EPS in 2026, with the transaction's return on invested capital expected to exceed the current weighted-average cost of capital by 2027.
Post-acquisition closure, the company updated its guidance for 2023 adjusted EPS to $4.89 - $5.03 (+1% to +4%) versus the consensus of $5.05 and $4.98 - $5.13 guided earlier.
The updated 2023 full-year EPS guidance range includes planned investments behind the U.S. commercialization of NJOY ACE.
The company continues to expect capital expenditures of $175 million-$225 million in 2023.
Also, Altria reiterated its previously authorized share repurchase program worth $1 billion by the end of 2023.
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Price Action: MO shares are trading higher by 0.65% at $44.71 on the last check Thursday.