Altria Group Inc MO shares are trading higher after it reported fourth-quarter FY23 results.
Revenues net of excise taxes decline by 1.2% Y/Y to $5.024 billion, missing the analyst consensus estimate of $5.063 billion.
Net revenues decreased 2.2% Y/Y to $5.98 billion due to lower net revenues in the smokeable products segment.
Revenue for smokeable products decreased by 3.3%, and oral tobacco products grew by 6.6%. Smokeable products segment reported domestic cigarette shipment volume decrease of 7.6%, with Marlboro down 6.4%.
Gross profit fell 0.3% Y/Y to $3.499 billion. The operating income for the quarter decreased by 0.8% to $2.796 billion. Adjusted EPS of $1.18 topped the consensus estimate of $1.17.
Buyback: In the fourth quarter, the company repurchased 6.5 million shares at an average price of $41.41 and completed the previously authorized $1 billion share repurchase program.
As of December 31, 2023, Altria held $3.686 billion in cash and cash equivalents and debt of $26.233 billion.
The Board of Directors authorized a new $1 billion share repurchase program, which is expected to be completed by December 31, 2024.
Outlook: Altria expects adjusted FY24 EPS guidance of $5.00-$5.15 versus the consensus of $5.08.
The company projects adjusted EPS growth to be weighted towards the second half of the year. Altria expects FY24 capital expenditures of $175 million and $225 million.
Price Action: MO shares are up 2.59% at $41.16 on the last check Thursday.
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