Altria (MO -9.30%) stock is seeing a pullback on Thursday following the company's latest quarterly report. The tobacco giant's share price was down 9.3% as of 12:25 p.m. ET. At the same point in the day's trading, the S&P 500 index was up 1.3%.
While the broader market is seeing a rebound after yesterday's rout, Altria isn't participating in the bullish momentum. The company's Q2 report arrived with more volume declines for its smokable segment, and investors are selling out of the stock today.
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Altria's Q2 results underwhelmed investors
Altria posted non-GAAP (adjusted) earnings of $1.48 per share in the second quarter, falling short of the average Wall Street analyst estimate by $0.02 per share. Revenue after excise taxes in the period rose 1.2% year over year to land at $5.36 billion, which was roughly in line with the average forecast. While revenue for the company's smokeable segment rose 2% year over year, adjusted domestic unit volume shipment for cigarettes dropped 4.5% year over year in the quarter.
NYSE: MO
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What's next for Altria?
Altria now expects its adjusted earnings per share for the year to be between $5.61 and $5.72 -- up from its previous target for per-share earnings between $5.56 and $5.72. On the other hand, the average forecast prior to the company's latest quarterly report had already called for per-share earnings of $5.69 -- and the midpoint of Altria's updated guidance range is still below that level. With persistent volume declines for its cigarette products and a softer-than-expected earnings outlook for the year, investors are questioning whether Altria's modest growth outlook can support its valuation.
