Altria Group 2025 Q1 Earnings Misses Targets as Net Income Falls 49.4%

Altria Group (MO), ranking 130th by market capitalization, reported its fiscal 2025 Q1 earnings on April 29th, 2025. The total revenue decreased by 5.7% to $5.26 billion in 2025 Q1, down from $5.58 billion in 2024 Q1. Altria's adjusted diluted EPS met expectations at $1.23, indicating a 6% increase from the prior year, while net income declined to $1.08 billion, down 49.4% from $2.13 billion in 2024 Q1. The company reaffirmed its full-year 2025 adjusted diluted EPS guidance of $5.30 to $5.45, in line with previous projections.

Revenue

Altria Group's revenue for Q1 2025 experienced a decline, totaling $5.26 billion. The smokeable products segment, accounting for the majority, generated $4.62 billion. Oral tobacco products followed with $654 million in revenue. The "All Other" segment reported a loss of $17 million. Amortization of intangibles and general corporate expenses accounted for zero revenue, contributing to the overall net revenue figure.

Earnings/Net Income

Altria Group's EPS declined significantly by 47.9% to $0.63 in 2025 Q1 from $1.21 in 2024 Q1. Meanwhile, the company's net income also fell sharply to $1.08 billion in 2025 Q1, down 49.4% from $2.13 billion reported in 2024 Q1. This decline highlights a challenging quarter for Altria, reflecting unfavorable earnings results.

Post-Earnings Price Action Review

Following the release of Altria Group's earnings report, the stock exhibited positive trends across various time frames despite the decline in key financial metrics. Historical analysis suggests that the stock tends to perform well in the short term after earnings announcements. A 3-day win rate of 56.62%, a 10-day win rate of 57.10%, and a 30-day win rate of 58.05% were observed, indicating favorable short-term price movements. The maximum return noted was 2.88% over a 30-day period, implying potential for price appreciation post-earnings. These results suggest that investors may still find opportunities in Altria's stock despite the recent challenges, underscoring optimism about the company's future prospects and price resilience.

CEO Commentary

"Our highly profitable traditional tobacco businesses performed well in a challenging environment in the first quarter," said Billy Gifford, Altria's Chief Executive Officer. He noted that the smokeable products segment delivered solid adjusted operating companies income growth, driven by the strength of Marlboro. In the oral tobacco products segment, on! maintained momentum in a competitive marketplace, supported by strategic investments. Gifford emphasized that shareholders continue to benefit from strong cash returns through dividends and share repurchases, while the company invests in pursuit of its Vision.

Guidance

Altria expects to deliver a full-year adjusted diluted EPS in the range of $5.30 to $5.45 for 2025, representing a growth rate of 2% to 5% from a base of $5.19 in 2024. This guidance considers various factors, including one fewer shipping day, limited impact from illicit product enforcement, reinvestment in cost savings from the Optimize & Accelerate initiative, and lower expected net periodic benefit income. The company remains focused on achieving these targets despite a dynamic external environment.

Additional News

Altria Group recently announced a regular quarterly dividend of $1.02 per share, reflecting its ongoing commitment to returning cash to shareholders. The dividend is scheduled for payment on April 30, 2025, to shareholders of record as of March 25, 2025. Additionally, Altria has appointed Richard S. Stoddart to its Board of Directors, effective February 3, 2025. Stoddart brings extensive leadership experience from his previous roles, including serving as board chair of Hasbro, Inc. Furthermore, Altria has completed its previously authorized $3.4 billion share repurchase program and initiated a new $1 billion repurchase program, expected to be completed by December 31, 2025, demonstrating its continued focus on shareholder value.