NYSE$MO

Altria Group Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Altria's Q4 2020 results were released, demonstrating resilience in its tobacco businesses amidst the COVID-19 pandemic, with progress made towards transitioning adult smokers to non-combustible products.

Altria reported a net revenue increase of 4.9% to $6.304 billion and a diluted EPS of $1.03 for Q4 2020. The company is focusing on accelerating investments to support its 10-year vision and expects full-year adjusted diluted EPS to grow by 3% to 6% in 2021.

  • Net revenues increased by 4.9% driven by higher revenues in the smokeable products segment.
  • Reported diluted EPS increased 100%+ to $1.03, driven by 2019 impairment of JUUL equity securities and higher reported OCI in the smokeable products and oral tobacco products segments.
  • Adjusted diluted EPS decreased 2.0% to $0.99, driven by adjusted losses in the all other category and lower adjusted earnings from Altria’s investment in ABI.
  • A new $2 billion share repurchase program was authorized, expected to be completed by June 30, 2022.

Headline financials

Total Revenue

$5.06B

Previous: $4.8B+5.3%
EPS (adj)

$0.99

Previous: $1.02-2.9%
Total Cigarette Share

43.3%

Previous: 43.0%+0.7%
Capital Expenditures

$69M

Previous: $86M-19.8%
Free Cash Flow

$2.47B

Previous: $2.48B-0.2%
Net Income

$1.92B

Previous: -$1.81B+206.0%
Operating Income

$2.58B

Previous: $2.43B+6.3%
Gross Profit

$3.15B

Previous: $3.08B+2.0%
Cash & Equivalents

$4.95B

Previous: $2.12B+133.6%
Total Assets

$47.4B

Previous: $49.3B-3.8%

Revenue & EPS history

Altria · Revenue · Quarterly

$5.06B

Q4 2020+5.3%vs Q4 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Altria · $6.2B total across 2 segments · Q4 2020

  • Smokeable Products
    $5.57B+7.9%
  • Oral Tobacco Products
    $632M+4.5%

Forward guidance

Altria expects its 2021 full-year adjusted diluted EPS to be in a range of $4.49 to $4.62, representing a growth rate of 3% to 6% from an adjusted diluted EPS base of $4.36 in 2020.

Tailwinds

  • Planned marketplace investments to expand the availability and awareness of Altria’s noncombustible products.
  • Costs associated with building an industry-leading consumer engagement platform that enhances data collection and insights in support of ATC conversion to noncombustible products.
  • Increased noncombustible product research and development expense.
  • 2021 adjusted diluted EPS growth to come in the last three quarters of the year, primarily due to prior year comparisons, including one fewer shipping day for the smokeable products segment in the first quarter.
  • 2021 full-year adjusted effective tax rate will be in a range of 24.5% to 25.5%.

Headwinds

  • Conditions related to unemployment rates.
  • Conditions related to fiscal stimulus.
  • Conditions related to ATC dynamics, including stay-at-home practices, disposable income, purchasing patterns and adoption of noncombustible products.
  • Conditions related to regulatory and legislative (including excise tax) developments.
  • Conditions related to the timing and breadth of COVID-19 vaccine deployment.

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 Q4 2020

Historical avgQ4 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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