What factors drove MO's EPS surprises in 2024?

Altria Group's (MO) EPS remained unchanged at $0 in 2024, reflecting a period of stability amid various internal and external challenges. Several key factors influenced this outcome:

1. **Pricing Power and Reduced Shipments**: Despite pricing power helping to offset the impact of reduced cigarette shipment volumes, net revenues still declined year-over-year due to the decreased volume and increased promotional investments in the smokeable product unit. This dynamic tension between pricing and volume trends has been a persistent feature of the tobacco industry, impacting both revenue and profit margins.
2. **Impact of Acquisitions and Divestitures**: The acquisition of NJOY Holdings Inc. on June 1, 2023, has been a significant strategic move, contributing to the company's performance in the fourth quarter. However, the exact extent of this contribution is not detailed in the available reports, suggesting that while acquisitions may bring new opportunities, integrating them into the existing business model can be complex and may not immediately yield significant EPS improvements.
3. **Market Dynamics and External Factors**: The ongoing shift towards smoke-free products, influenced by regulatory changes, consumer health awareness, and the adoption of smoke-free products, continues to affect traditional tobacco companies like Altria. The company's emphasis on adapting to these trends through innovative product offerings, such as oral nicotine pouch products and FDA-approved smoke-free products, indicates a proactive approach to maintaining market share and exploring new revenue streams.

In summary, Altria's 2024 EPS reflects a delicate balance between pricing strategies, product mix, and the impact of corporate actions like acquisitions, all set against a backdrop of evolving market dynamics and regulatory environments.