Altria Shares Slide On Q3 Earnings Miss, Tightens FY21 EPS Outlook

Altria Group Inc MO reported a third-quarter FY21 net revenue decline of 4.7% year-on-year, to $6.79 billion, and revenues net of excise taxes decrease of 2.6% to $5.53 billion.
The revenue for smokeable products declined 5.4%, and oral tobacco products fell 2.2%.
Gross profit fell 1.2% Y/Y to $3.67 billion, while the margin expanded 194 basis points to 54.1%.
The operating margin was 43.4%, and operating income for the quarter declined 6.6% to $2.95 billion.
Adjusted EPS of $1.22 missed the analyst consensus of $1.26.
Altria held $2.9 billion in cash and equivalents as of September 30, 2021. The total debt of Altria amounted to $28.1 billion.
Altria expanded its existing $2.0 billion share repurchase program to $3.5 billion. Following the expansion, Altria has approximately $2.5 billion remaining in the program.
Outlook: Altria raised the low end of FY21 adjusted EPS guidance to $4.58 - $4.62 (prior view $4.56 - $4.62) versus the consensus of $4.62.
Price Action: MO shares are trading lower by 4.62% at $45.31 on the last check Thursday.

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