The 10-second takeaway
For the quarter ended June 30 (Q2), Altria Group missed estimates on revenues and missed slightly on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share expanded. GAAP earnings per share grew.
Margins dropped across the board.
Altria Group logged revenue of $4.53 billion. The seven analysts polled by S&P Capital IQ predicted revenue of $4.62 billion on the same basis. GAAP reported sales were 38% higher than the prior-year quarter's $4.58 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 $0.62. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.63 per share. Non-GAAP EPS of $0.62 for Q2 were 5.1% higher than the prior-year quarter's $0.59 per share. GAAP EPS of $0.63 for Q2 were 5.0% higher than the prior-year quarter's $0.60 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 40.5%, much worse than the prior-year quarter. Operating margin was 31.8%, 970 basis points worse than the prior-year quarter. Net margin was 20.1%, 660 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $4.51 billion. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $17.60 billion. The average EPS estimate is $2.40.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 8,647 members out of 8,973 rating the stock outperform, and 326 members rating it underperform. Among 2,103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 2,066 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 $36.58.
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