NYSE$MO

Altria Group Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Altria's first-quarter results for 2022 reflect a strong start to the year, with the businesses on track to deliver against their full-year plans, despite a challenging macroeconomic environment.

Altria Group, Inc. reported a decrease in net revenues by 2.4% to $5.9 billion, but an increase in adjusted diluted EPS by 4.7% to $1.12. The company reaffirms its guidance for 2022 full-year adjusted diluted EPS in a range of $4.79 to $4.93.

  • Net revenues decreased 2.4% to $5.9 billion, primarily driven by the sale of the wine business.
  • Reported diluted EPS increased 40.3% to $1.08, primarily driven by 2021 losses on early extinguishment of debt.
  • Adjusted diluted EPS increased 4.7% to $1.12, primarily driven by higher adjusted OCI, fewer shares outstanding and favorable interest expense, partially offset by lower adjusted earnings from investment in ABI.
  • The company reaffirms its guidance to deliver 2022 full-year adjusted diluted EPS in a range of $4.79 to $4.93.

Headline financials

Total Revenue

$4.82B

Previous: $4.88B-1.3%
EPS (adj)

$1.12

Previous: $1.07+4.7%
Total Cigarette Share

48.1%

Previous: 43.1%+11.6%
Capital Expenditures

$45M

Previous: $26M+73.1%
Free Cash Flow

$3.03B

Previous: $3.01B+0.5%
Net Income

$1.96B

Previous: $1.42B+37.9%
Operating Income

$2.88B

Previous: $2.69B+7.2%
Gross Profit

$3.37B

Previous: $3.27B+3.1%
Cash & Equivalents

$5.35B

Previous: $5.79B-7.6%
Total Assets

$40.2B

Previous: $48.8B-17.5%

Revenue & EPS history

Altria · Revenue · Quarterly

$4.82B

Q1 2022-1.2%vs Q1 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Altria · $5.88B total across 2 segments · Q1 2022

  • Smokeable Products
    $5.27B+0.3%
  • Oral Tobacco Products
    $613M-2.1%

Forward guidance

Altria reaffirms its guidance to deliver 2022 full-year adjusted diluted EPS in a range of $4.79 to $4.93, representing a growth rate of 4% to 7% from an adjusted diluted EPS base of $4.61 in 2021. Adjusted diluted EPS growth is expected to be weighted toward the second half of the year.

Tailwinds

  • Planned investments in support of our Vision, such as costs to enhance our digital consumer engagement system.
  • Increased smoke-free product research, development and regulatory preparation expenses.
  • Marketplace activities in support of our smoke-free products.
  • Continued monitoring of conditions related to the economy.
  • Monitoring of ATC dynamics, including tobacco usage occasions, available disposable income, purchasing patterns and adoption of smoke-free products.

Headwinds

  • Impact of increased inflation and global supply chain disruptions.
  • Impact of current and future COVID-19 variants and mitigation strategies.
  • Regulatory and legislative developments.
  • Impacts of the Russian invasion of Ukraine.
  • Anticipated inflationary increases in MSA expenses and direct materials costs and our current expectation that PM USA will not have access to the IQOS system in 2022.

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 2022

Historical avgQ1 2022

-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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