Altria Posts Strong Q4 Report, Looks Forward to AB InBev Merger

Altria, one of the world's largest tobacco producers, kicked off the vice earnings season with a quarterly report Thursday. Revenues after excise taxes increased 2.5 percent to $4.7 billion for the quarter and increased 5.1 percent to $18.9 billion. The Street was expecting $4.75 billion for the quarter and $18.85 billion for the year. Adjusted EPS rose 1.5 percent to $0.67 for the fourth quarter. Analysts were expecting $0.68 for the quarter. "Our core businesses generated impressive and consistent income growth during the year behind the strength of their premium brands," said chairman, president and CEO Marty Barrington. He also noted Altria's large stake in SABMiller could pay off if the AB InBev merger is successful. The company announced a 2016 EPS guidance of $3.00 to $3.05, which represents a 7 to 9 percent increase over its diluted adjusted EPS of $2.80 for 2015. Wall Street expects a 2016 EPS of $3.05. The company paid out over $1 billion in fourth-quarter dividends and delivered $4.2 billion to shareholders in 2015. The company also plans to complete the repurchase of $1 billion in stock by the end of 2016. Altria shares were up 0.5 percent at time of writing. Reynolds American, Inc. RAI and Philip Morris International Inc. PM don't report quarterly earnings until early February, but both stocks were trending up 0.6 percent Thursday morning, likely on the heels of their competitor's favorable report. In other vice stocks, Molson Coors Brewing Company TAP shares were up 0.6 percent and SABMiller PLC SBMRY was up 0.1 percent Thursday morning.