J.P. Morgan Overweight On Altria After Earnings (MO)

J.P. Morgan Chase & Co. has an Overweight rating on shares of Altria MO following the company's earnings report this morning. In a note to clients, J.P. Morgan writes, "Q1 adjusted EPS $0.44 (2010 Q1 $0.42) compared with our estimate of $0.44 and Bloomberg consensus of $0.44 (range ($0.43 - $0.45). Guidance for the full year on an adjusted basis of $2.01 - $2.07 is unchanged (as we had expected at this stage). Our own full year estimate of $2.04 (and consensus of $2.04) is unlikely to change we believe. Cigarette underlying operating income was $1.349bn compared with our estimate of $1.328bn (2010 Q1 $1.259bn). Volumes fell 6.4% YoY with estimated revenues ex duty and MSA of $2.29bn compared with our estimate of $2.36bn. Per pack equivalent revenues were an estimated 6% higher YoY compared with our estimate of +5%. Better cost control drove the better than expected profit." Shares of MO are off 46 cents to $25.92, a drop of 1.7% this morning.