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.
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 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.
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.
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.
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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