Altria Group Beats on Both Top and Bottom Lines

Altria Group (NYSE: MO  ) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Altria Group beat expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased significantly.

Margins improved across the board.

Revenue details
Altria Group booked revenue of $4.58 billion. The eight analysts polled by S&P Capital IQ expected a top line of $4.48 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $4.00 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.59. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.57 per share. GAAP EPS of $0.60 for Q2 were 186% higher than the prior-year quarter's $0.21 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 54.5%, 520 basis points better than the prior-year quarter. Operating margin was 41.5%, 910 basis points better than the prior-year quarter. Net margin was 26.7%, 1,560 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $4.35 billion. On the bottom line, the average EPS estimate is $0.59.

Next year's average estimate for revenue is $17.33 billion. The average EPS estimate is $2.22.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 8,650 members out of 8,972 rating the stock outperform, and 322 members rating it underperform. Among 2,321 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 2,285 give Altria Group a green thumbs-up, and 36 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Altria Group is outperform, with an average price target of $33.00.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 30, 2012, at 5:37 PM, xetn wrote:

    MO: Keep on smokin! (Pun intended)

  • Report this Comment On July 30, 2012, at 6:01 PM, runningoutofcash wrote:

    Momemteum stock...broke 52 week high.

    - Dividend : 5%+ ...may announce/increase dividend next month (august from .41 to .??)...as they usual do in the month of august.

    - Lots of SHorts (...and they seem to be covering)..as we break all-time-highs...june 6th was the Turning point.

    - USA - only_PLAY ..not hooked on euro-zone turmoil !!

    - Owns 25% of SABMiller ( 2nd largest beer company in the world)..and if they sell-back their stake ...just like constellation_brands(stz) sold back COrona_beer to "BUD"....the stock will take-off.

    - MOST Important_reason ..why this stock will trend-higher::>>

    The FDA could force the tobacco companies to put a skull and crossbones on each pack large enough to cover 80% of the package. Then they could make them write the word POISON on the other 20% and the morons that smoke would still buy them.

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4/17/2014 4:00 PM
MO $38.45 Up +0.09 +0.23%
Altria Group, Inc. CAPS Rating: ****

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