- Cigarette maker Marlboro is working to diversify its offerings as smoking rates decline in the US.
- Ahead of the earnings call, Altria announced a strategic partnership with Japan Tobacco to develop smokeless tobacco products.
- Altria previously cut the value of its stake in troubled vaping company Juul.
Cigarette maker Altria Group on Thursday reported third-quarter earnings that fell short of Wall Street estimates as its revenue fell.
Here’s what the company said compared to what Wall Street expected, based on a survey of analysts at Refinitiv:
- Earnings per share: $1.28 adjusted against expected $1.30.
- Income: $5.41 billion vs. expected $5.59 billion.
Altria shares fell 2% in pre-market trading.
Cigarette maker Marlboro, which is working to diversify its offerings as U.S. smoking rates decline, also announced a strategic partnership with Japan Tobacco to develop smokeless tobacco products ahead of the earnings report.
The move comes after Altria cut the value of its $13 billion stake in troubled vape company Juul to less than 5% of its original value in July amid product regulatory action. Although Altria retains a 35% stake in Juul, it exercised an option last month to be exempt from non-compete obligations with the company.
“We are delighted to launch a new partnership with JT Group, a leading international tobacco company,” said Billy Gifford, Altria’s chief executive officer. “We believe this relationship can accelerate harm reduction for adult smokers around the world.”
Altria also revealed last week that Philip Morris International agreed to pay $2.7 billion for the exclusive right to sell IQOS smokeless tobacco heating devices in the US.
In the third quarter, Altria reported revenue net of excises of $5.41 billion, down 2% from a year ago. Its net income for this period was $224 million, or 12 cents per share. Excluding one-time items, the company said it earned $1.28 per share.
For 2022, the company also narrowed its earnings-per-share guidance to $4.81-$4.89, corresponding to a 4.5-6% increase over 2021.
The company previously forecast full-year adjusted diluted earnings per share in the range of $4.79 to $4.93.
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Credit: www.cnbc.com /