Altria Q4 revenue falls, EPS misses estimates as smokeable products drag

Overview

• Tobacco company's Q4 2025 revenue fell 2.1% yr/yr

• Adjusted EPS for Q4 missed analyst expectations

• Company repurchased 4.8 mln shares in Q4 for $288 mln

Outlook

• Altria expects 2026 full-year adjusted diluted EPS between $5.56 and $5.72

• Company anticipates 2026 adjusted effective tax rate between 22.5% and 23.5%

• Altria forecasts 2026 capital expenditures between $300 mln and $375 mln

Result Drivers

• SMOKEABLE PRODUCTS - Decline in net revenues driven by lower shipment volumes and higher promotional investments

• COST SAVINGS - Lower costs related to the Optimize & Accelerate initiative contributed to stable adjusted EPS

• SMOKE-FREE PORTFOLIO - FDA marketing authorizations for on! PLUS products in multiple flavors and strengths

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 7 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the tobacco peer group is "buy."

• Wall Street's median 12-month price target for Altria Group Inc is $62.56, about 0.9% below its January 28 closing price of $63.13

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw6hZMd6a

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