Altria Group's Q4 2024 Earnings Preview: Expansion of Operating Margins Despite Secular Decline in Cigarette Volumes.

Altria Group Inc. (MO) has expanded operating margins despite a secular decline in cigarette volumes. The company holds a leading position in cigarettes and smokeless tobacco in the US, with Marlboro being the top cigarette brand. Altria also holds an 8% interest in Anheuser-Busch InBev and a 41% stake in cannabis company Cronos Group.

Altria Group Inc. (MO) has demonstrated resilience in expanding its operating margins despite a secular decline in cigarette volumes. The company, through its subsidiaries, holds a commanding position in the U.S. tobacco market, with Marlboro as the leading cigarette brand. Altria's strong market presence and strategic investments have enabled it to maintain profitability and attract institutional investors.

According to Morningstar [1], Altria's operating margins have grown while cigarette volumes have continued to decline. This expansion is attributed to the company's ability to maintain its market leadership and diversify its product offerings. Altria's subsidiaries include Philip Morris USA, US Smokeless Tobacco, John Middleton, Horizon Innovations, and Helix Innovations. These subsidiaries contribute to Altria's dominance in the tobacco market.

Additionally, Altria holds a significant stake in Anheuser-Busch InBev and a 41% stake in cannabis company Cronos Group. These investments have further bolstered Altria's financial performance and provided additional revenue streams. The company's diverse portfolio has positioned it well to navigate the evolving tobacco industry landscape.

Institutional investors have taken notice of Altria's financial performance. Recent earnings reports have shown strong results, with Altria Group shares reaching a new 52-week high of $62.21 after reporting quarterly earnings of $1.44 per share, exceeding expectations [3]. The company also announced a quarterly dividend of $1.02 per share, resulting in an annualized dividend yield of 6.69%.

Analysts have responded positively to Altria's performance. While the consensus rating remains "Hold," several firms have raised their price targets and ratings. Citigroup, for instance, upgraded Altria to a "neutral" rating with a price objective of $55.00 [3]. Jefferies Financial Group, on the other hand, issued an "underperform" rating and a $50.00 price objective [3]. Despite these varying opinions, Altria's strong fundamentals and market position have drawn significant institutional investment.

In conclusion, Altria Group Inc. has successfully expanded its operating margins despite the secular decline in cigarette volumes. The company's leadership in the tobacco market, strategic investments, and strong financial performance have positioned it as a key player in the industry. Investors and financial professionals should closely monitor Altria's future earnings and strategic initiatives.

References:
[1] https://finance.yahoo.com/research/reports/MS_0P000000AV_AnalystReport_1754277694000?ncid=yahooproperties_plusresear_nm5q6ze1cei&yptr=yahoo
[2] https://ca.finance.yahoo.com/quote/MO/
[3] https://www.marketbeat.com/instant-alerts/altria-group-nysemo-hits-new-52-week-high-after-earnings-beat-2025-07-30/