Companies and Brands

Solid Earnings Pull Altria Through Q4

Chris Lange

Published: January 28, 2016 11:50 am

Last Updated: January 13, 2020 2:25 pm

Altria Group Inc. (NYSE: MO) reported its fourth-quarter financial results before the markets opened on Thursday. The company had $0.67 in earnings per share (EPS) on $4.79 in revenue (excluding excise taxes). Thomson Reuters’ consensus estimates had called for $0.68 in EPS on $4.75 billion in revenue. The same period from the previous year had $0.66 in EPS on $4.61 billion in revenue.

During the fourth quarter, Altria repurchased 0.6 million shares for a total to shareholders of $35 million. Also Altria paid over $1 billion in dividends in the fourth quarter. The company had roughly $965 million remaining in the current $1 billion share repurchase program, which it expects to complete by the end of 2016.

In terms of guidance, the company expects full year 2016 EPS to be in the range of $3.00 to $3.05 and capital expenditures to be in the range of $140 million to $180 million. Consensus estimates call for $3.05 in EPS on $19.31 billion in revenue for the 2016 full year.

The smokeable products segment’s net revenues increased 0.8% in the fourth quarter of 2015, primarily driven by higher pricing, partially offset by lower shipment volume. Revenues totaled $5.56 billion in the fourth quarter.

The smokeless products segment’s net revenues increased 4.7% in the fourth quarter and 3.9% for the full year of 2015, primarily driven by higher pricing, partially offset by higher promotional investments. Revenues totaled $486 million in the fourth quarter.

Marty Barrington, Altria’s chairman, CEO and president, commented:

In 2015, Altria delivered yet another year of excellent business results and outstanding shareholder returns. We grew full-year adjusted diluted EPS by 8.9%, in line with our long-term EPS growth objective. Altria paid nearly $4.2 billion in dividends to shareholders, consistent with our goal of paying out approximately 80% of adjusted diluted EPS. And Altria’s total return to shareholders of 23.1% far outpaced the S&P 500 and the S&P Food, Beverage and Tobacco Index, marking the third consecutive year that total shareholder return has exceeded 20%.

Shares of Altria were trading at $59.20 midday Thursday, with a consensus analyst price target of $64.86 and a 52-week trading range of $47.31 to $61.74.