What caused MO's Q2 2024 EPS to miss expectations?

Altria Group Inc.'s (MO) Q2 2024 EPS of $2.21 missed expectations, primarily due to a combination of factors impacting its smokeable products segment: 1. **Lower Shipment Volume**: Domestic cigarette shipment volumes experienced a significant decline, with Marlboro shipments dropping by 8.7%. This reduction in volume is a key factor contributing to the lower revenues and, consequently, the lower EPS. 2. **Revenue Decline in Smokeable Products**: The smokeable products segment saw a net revenue decrease of 3.6%, primarily attributed to lower shipment volumes and higher promotional investments. This decline in revenue is a direct result of the lower volume sales. 3. **Increased Promotional Investments**: The company has been investing more in promotions, which, although intended to boost volume sales, have not fully offset the negative impact of lower shipment volumes. These increased promotional costs, combined with the lower revenue, have contributed to the lower EPS. In summary, the Q2 2024 EPS miss for Altria Group Inc. is primarily due to lower domestic cigarette shipment volumes, particularly with Marlboro, and increased promotional investments, despite higher pricing in the oral tobacco products segment.