Shares of Altria Group (NYSE: MO) fell in pre-market trading on Thursday after the tobacco giant reported adjusted earnings of $1.18 per diluted share, up by 5.4% year-over-year versus analysts’ expectations of $1.19 per share.
However, the company’s net revenues dipped by 2.9% year-over-year to $5.7 billion but above consensus forecasts of $4.9 billion.
Looking forward, management reaffirmed its guidance for FY23 and expects adjusted diluted EPS in the range of $4.98 to $5.13, a growth rate of “3% to 6% from a $4.84 base in 2022.”
The company also provided an update on its vaping investments regarding its exit from JUUL and “recorded a non-cash, pre-tax loss of $250 million on the disposition of our JUUL equity securities for the three months ended March 31, 2023.” The company added, “…we considered specific facts and circumstances around the nature of intellectual property we received as part of the 2023 JUUL Transaction and determined that the fair value of the intellectual property was not material to our financial statements.”
Overall, Wall Street analysts are cautiously optimistic about MO stock with a Moderate Buy consensus rating based on four Buys, five Holds, and one Sell.