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Altria Group (NYSE:MO) edged higher in early trading on Wednesday after topping estimates on both lines of its Q2 earnings report and setting favorable guidance.
Net revenue decreased 1.8% during the quarter to $6.1 billion, primarily driven by lower net revenues in the smokeable products segment, partially offset by higher net revenues in the oral tobacco products segment. Revenues net of excise taxes increased 0.2% to $5.3 billion.
In the smokeable products segment, revenue decreased 2.5%, primarily driven by lower shipment volume, partially offset by higher pricing. Revenues net of excise taxes decreased 0.4%. The segment reported domestic cigarette shipment volume decreased 10.2%, primarily driven by the industry’s decline rate.
Adjusted diluted EPS increased 8.3% to $1.44, primarily driven by higher adjusted OCI and fewer shares outstanding. The EPS tally beat the consensus estimate of $1.38.
“In the second quarter, we continued the pursuit of our Vision while maintaining our strong and profitable core businesses,” stated CEO Billy Gifford. “In oral tobacco, on! delivered strong performance and was the substantial driver of the segment’s growth in the quarter. And we returned significant value to our loyal shareholders during the first-half of the year, with more than $4 billion delivered through dividends and share repurchases,” he added.
Looking ahead, Altria Group (NYSE:MO) made a slight adjustment to its full-year guidance, saying it sees 2025 adjusted EPS of $5.35 to $5.45 (midpoint $5.40) vs. a prior outlook for $5.30 to $5.45 and the consensus estimate of $5.38.
Shares of Altria (MO) rose 0.7% in premarket trading to $59.75 vs. the 52-week range of $47.57 to $61.26. The dividend yield for new buyers of the stock is 6.9%.