Why Marlboro Maker Altria's Shares Are Falling Today

Altria Group Inc MO reported a third-quarter FY23 revenues net of excise taxes decline of 2.5% year-on-year to $5.277 billion, missing the analyst consensus estimate of $5.427 billion.

Net revenues decreased 4.1% to $6.28 billion. Revenue for smokeable products decreased by 5.3%, and oral tobacco products grew by 2.2%.

Smokeable products segment reported domestic cigarette shipment volume decrease of 11.6%, with Marlboro down 10.5%.

Gross profit climbed 0.1% Y/Y to $3.699 billion. The operating income for the quarter decreased by 0.7% to $3.089 billion.

Adjusted EPS of $1.28 missed the consensus estimate of $1.29. 

In Q3, the company repurchased 5.9 million shares at an average price of $44.26, for a total cost of $260 million. As of September 30, 2023, the company had $268 million remaining under the current share repurchase program.

Altria held $1.537 billion in cash and equivalents as of September 30, 2023. Total debt of Altria amounted to $25.098 billion.

Outlook: Altria narrowed adjusted FY23 EPS guidance from $4.89 - $5.03 to $4.91 - $4.98 versus the consensus of $4.70.

MO continues to expect FY23 capital expenditures of $175 million - $225 million.

Price Action: MO shares are trading lower by 3.97% at $41.12 on the last check Thursday.