Altria Profit, Revenue Grow as Cigarette Shipments Rise
April 28 2016 - 8:02AM
Dow Jones News
By Anne Steele
Altria Group Inc. on Thursday reported profit and revenue growth
as the tobacco company saw its cigarette shipments climb.
Earnings beat expectations and shares edged up 0.6% in light
premarket trading to $61.90.
Chief Executive Marty Barrington pointed to strength in the
company's core tobacco businesses. In its latest quarter,
cigarette-shipment volume rose 1.2%.
Altria's cigarette market share edged up to 51.4% from 51.1% a
year earlier, led by its discount brands as Marlboro retail share
remained flat. The U.S.'s largest tobacco company, Altria is facing
stronger competition from No. 2 player Reynolds American Inc.,
which last June closed a $25 billion acquisition of rival Lorillard
Inc.
Altria's earnings rose to $1.22 billion, or 62 cents a share,
from $1.02 billion, or 52 cents a share, a year earlier. Excluding
litigation costs and other special items, per-share earnings rose
to 72 cents from 63 cents. Analysts polled by Thomson Reuters had
forecast earnings of 68 cents.
Net revenue after excise taxes was $3.92 billion, up from $3.72
billion a year earlier.
Altria reaffirmed its guidance for 2016 earnings of $3 to $3.05
a share, excluding restructuring charges.
On Tuesday, rival Reynolds American reported a 42% increase in
first-quarter sales, driven the acquisition of Lorillard and its
Newport cigarette brand.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
April 28, 2016 07:47 ET (11:47 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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