Is MO's Q3 2024 EPS growth sustainable long-term?

**Altria Group's (MO) Q3 2024 EPS growth appears to be sustainable long-term**, based on the following points:

1. **Consistent Financial Performance**: Altria Group has demonstrated robust financial performance in recent years, with significant increases in revenue, EBITDA, and net profit. For instance, full-year 2024 revenues increased by 9% to €218 million, and EBITDA surged by 59% to €218 million. This consistent growth indicates a strong business foundation.

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|market_code|
|---|---|---|---|---|---|---|
|MO|MO.N|Altria Group|2024 Q1|19.138220481253498|-2.5004371393600278|169|
|MO|MO.N|Altria Group|2024 Q2|79.64100141709966|-4.594345421020283|169|
|MO|MO.N|Altria Group|2024 Q3|5.863342566943675|-0.3502626970227671|169|
|MO|MO.N|Altria Group|2024 Q4|47.52427184466019|-0.01673640167364017|169|

|code|Ticker|Name|Date|Free Cash Flow|Investing Cash Flow|Operating Cash Flow|Financing Cash Flow|market_code|
|---|---|---|---|---|---|---|---|---|
|MO|MO.N|Altria Group|2024 Q1|5.902000049E9|2.316E9|2.877E9|-5.268E9|169|
|MO|MO.N|Altria Group|2024 Q2|2.92300174E9|-3.7E7|-7.5E7|-1.698E9|169|
|MO|MO.N|Altria Group|2024 Q3|5.849002305E9|-4.1E7|2.611E9|-2.478E9|169|
|MO|MO.N|Altria Group|2024 Q4|9.941998444E9|-6.3E7|3.34E9|-2.047E9|169|

2. **Strategic Initiatives**: The company's strategic focus on reducing costs and leveraging market opportunities has contributed to its robust performance. Additionally, the introduction of modernization initiatives, such as the Gamma Project, could further enhance growth prospects.
3. **Market Position and Brand Strength**: Altria Group's strong brand portfolio and market leadership in the US tobacco industry provide a competitive advantage. The company's flagship brand, Marlboro, holds a commanding market share, which supports sustained revenue and profit growth.
4. **Diversification and Innovation**: Altria's investments in cannabis through Cronos and in smoke-free products with NJOY Holdings indicate a forward-looking approach to diversifying its portfolio and tapping into new markets. This diversification could help mitigate risks and sustain growth in the long term.
5. **Financial Health and Discipline**: The company's financial health, as evidenced by a reduced net debt and a net debt to EBITDA ratio of 1x, suggests a disciplined approach to managing finances. This discipline is crucial for sustaining long-term growth and profitability.
6. **Industry Trends**: Favorable industry trends, such as stable wood prices and decreasing chemical prices, have supported the company's cost management efforts. These trends are likely to continue, providing a stable operating environment.
7. **Dividend and Shareholder Returns**: Altria Group's commitment to shareholder returns, as shown by its regular dividend payments and share repurchase programs, enhances investor confidence and aligns the company's interests with long-term shareholders. This commitment to returns can drive long-term growth by motivating the company to maintain high performance standards.

In conclusion, while there may be short-term fluctuations in the tobacco industry, Altria Group's strong financial performance, strategic initiatives, and commitment to shareholder returns suggest that its Q3 2024 EPS growth is likely to be sustainable in the long term.