The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Altria Group beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded, and GAAP earnings per share expanded significantly.
Margins contracted across the board.
Altria Group booked revenue of $4.35 billion. The seven analysts polled by S&P Capital IQ predicted revenue of $4.23 billion. Sales were 5.0% higher than the prior-year quarter's $4.14 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.50. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.49 per share on the same basis. GAAP EPS of $0.41 for Q4 were 6.8% lower than the prior-year quarter's $0.44 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 54.6%, 10 basis points worse than the prior-year quarter. Operating margin was 36.2%, 660 basis points worse than the prior-year quarter. Net margin was 19.2%, 300 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.99 billion. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $17.27 billion. The average EPS estimate is $2.20.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 8,603 members out of 8,921 rating the stock outperform, and 318 members rating it underperform. Among 2,207 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 2,170 give Altria Group a green thumbs-up, and 37 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 $28.55.
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