Cigarette maker Altria Group Inc. (MO: Quote) on Tuesday reported a profit for the second quarter that surpassed Wall Street estimates. Revenues climbed nearly 10 percent, helped by higher prices. The company raised the lower end of its full year earnings outlook.
Net earnings attributable to the company surged to $1.225 billion from $444 million. Earnings per share advanced to $0.60 from $0.21. The prior-year results included a $0.30 per share charge related to certain PMCC leveraged lease.
Adjusted earnings grew to $0.59 from $0.54. On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.57 per share. Analysts' estimates typically exclude special items.
Net revenues climbed nearly 10 percent to $6.487 billion from $5.920 billion. Revenues net of excise taxes increased 14.4 percent to $4.6 billion. Analysts expected revenues of $4.48 billion.
For the smokable products segment, net revenues grew 0.8 percent, primarily due to higher list prices.
Total cigarette volume edged up 0.1 percent while Marlboro saw a drop of 0.8 percent. Cigar volumes grew 0.6 percent.
In Smokeless products, net revenues grew 5.4 percent and volume increased 7.6 percent. Copenhagen saw a 12.6 percent increase in volume while Skoal volume advanced 6.6 percent.
Further, the company revised its full year earnings per share guidance to a range of $2.19 to $2.23 from a range of $2.17 to $2.23. Analysts expect the company to earn $2.21 per share for the year.
Reported earnings are now expected to range from $2.29 to $2.33 compared to the previous forecast of $2.28 to $2.34.
MO dropped 1.2 percent on Monday to close at $35.49.
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by RTT Staff Writer
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