NYSE$MO

Altria Group Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Altria's core tobacco segments delivered strong OCI and cash flow, while earnings guidance was withdrawn due to uncertain COVID-19 impacts.

Altria Group, Inc. reported strong first-quarter results, driven by the strength of its smokeable and oral tobacco products segments, with adjusted diluted EPS growing by 18.5%. However, due to uncertainties related to the impact of the COVID-19 pandemic, the company withdrew its full-year 2020 adjusted diluted EPS guidance and 2020-2022 adjusted diluted EPS growth objective.

  • Altria withdrew its full-year 2020 adjusted diluted EPS guidance due to COVID-19 uncertainties.
  • The company's dividend remains a top priority, with an objective of an approximately 80% payout ratio of adjusted diluted EPS.
  • Net revenues increased by 13.0% to $6.4 billion, driven by higher net revenues in the smokeable and oral tobacco products segments.
  • Adjusted diluted EPS increased 18.5% to $1.09, primarily driven by higher adjusted OCI in the smokeable and oral tobacco products segments and fewer shares outstanding.

Headline financials

Total Revenue

$6.36B

Previous: $5.63B+13.0%
EPS (adj)

$1.09

Previous: $0.90+21.1%
Total Cigarette Share

42.8%

Previous: 43.3%-1.2%
Capital Expenditures

-$52M

Previous: -$38M-36.8%
Free Cash Flow

$1.5B

Previous: $1.08B+38.6%
Net Income

$1.55B

Previous: $1.12B+38.6%
Operating Income

$2.34B

Previous: $2.24B+4.4%
Gross Profit

$2.87B

Previous: $2.81B+2.2%
Cash & Equivalents

$5.62B

Previous: $3.35B+67.5%
Total Assets

$52.6B

Previous: $59.2B-11.2%

Revenue & EPS history

Altria · Revenue · Quarterly

$6.36B

Q1 2020+13%vs Q1 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Altria · $6.21B total across 2 segments · Q1 2020

  • Smokeable Products
    $5.61B
  • Oral Tobacco Products
    $601M

Forward guidance

Due to the uncertainties related to the impact of the COVID-19 pandemic and economic recovery scenarios, Altria withdraws its full-year 2020 adjusted diluted EPS guidance of $4.39 to $4.51 and, as a result, Altria also withdraws its 2020 to 2022 compounded annual adjusted diluted EPS growth objective of 4% to 7%.

Headwinds

  • Uncertain contributions from its equity investment in ABI
  • Potential impacts of COVID-19 on the macro-economic environment
  • Potential impacts of COVID-19 on adult tobacco consumers
  • Withdrawal of its full-year 2020 adjusted diluted EPS guidance
  • Withdrawal of its 2020 to 2022 compounded annual adjusted diluted EPS growth objective

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.3%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+0.7%

Avg return

30 days after

47%

34 / 72 earnings

Positive

+6.7%

Q3 2024

Best reaction

-8.2%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.9%+6.7%+2.1%
Q4 2025-5.2%+1.6%+9.4%
Q3 2025-7.8%-7.5%-4.8%
Q2 2025+3.6%+4.3%+13.2%
Q1 2025+1.0%+2.4%+2.2%
Q4 2024-2.1%-0.1%+6.1%
Q3 2024+6.7%+7.3%+14.3%
Q2 2024-1.0%-2.4%+6.4%
Q1 2024+1.1%+2.1%+6.0%
Q4 2023+3.1%+1.2%+1.8%
Q3 2023-8.2%-6.2%-3.2%
Q2 2023-1.9%-3.1%-2.6%
Q1 2023+1.8%+1.0%-4.5%
Q4 2022+4.3%+4.3%+3.3%
Q3 2022+0.0%-0.4%-3.4%
Q2 2022-0.5%-0.5%+4.1%
Q1 2022+1.2%+0.9%-0.9%
Q4 2021+2.0%+2.4%+4.1%
Q3 2021-7.1%-7.1%-7.9%
Q2 2021+0.9%+0.4%+4.0%
Q1 2021+1.2%+1.4%+4.3%
Q4 2020-1.8%-0.6%+4.3%
Q3 2020-1.1%+3.3%+9.5%
Q2 2020-1.2%-2.3%+3.8%
Q1 2020-6.3%-9.1%-3.5%
Q4 2019-5.1%-7.2%-19.4%
Q3 2019-2.0%+0.6%+8.1%
Q2 2019-6.4%-4.7%-12.0%
Q1 2019-3.5%-0.7%-4.2%
Q4 2018+2.9%+2.6%+10.4%
Q3 2018+1.3%+5.7%-13.8%
Q2 2018+0.1%+1.4%+1.6%
Q1 2018+0.5%+0.3%-0.4%
Q4 2017-1.3%-5.4%-11.1%
Q3 2017+1.8%+0.7%+2.6%
Q2 2017-6.7%-8.7%-10.7%
Q1 2017-0.8%+0.2%+6.5%
Q4 2016+0.4%+0.2%+6.2%
Q3 2016+2.1%+1.5%-0.1%
Q2 2016-1.2%-0.4%-3.1%
Q1 2016+1.9%
Q4 2015+3.6%
Q3 2015-1.6%
Q2 2015-1.9%
Q1 2015-0.1%
Q4 2014-1.1%
Q3 2014+1.6%
Q1 2014+2.1%
Q4 2013-3.3%
Q3 2013-0.4%
Q2 2013-3.6%
Q1 2013+1.5%
Q4 2012+1.5%
Q3 2012-1.2%
Q2 2012-0.3%
Q1 2012-0.2%
Q4 2011+1.4%
Q3 2011+1.1%
Q2 2011+0.7%
Q1 2011-0.5%
Q4 2007+2.7%
Q4 2010+2.7%
Q3 2010+1.2%
Q2 2010-1.4%
Q1 2009+1.2%
Q1 2010+0.9%
Q4 2009+2.2%
Q3 2008-0.5%
Q3 2009-0.5%
Q4 2008-0.7%
Q2 2009-0.7%
Q2 2008-0.7%

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