Altria Outperforms S&P 500 as Earnings Beat and Share Buybacks Offset Revenue Dip $0.4 Billion Volume Shows Modest Investor Confidence

Altria Group (MO) rose 1.19% on August 29, 2025, with a trading volume of $0.4 billion, reflecting modest investor confidence. The stock outperformed the S&P 500, which posted lower returns, signaling resilience in the tobacco sector amid broader market fluctuations.

The company reported Q2 2025 earnings of $1.44 per share, exceeding estimates by $0.07 and marking an 8.3% year-over-year increase. This was driven by reduced shares outstanding and higher adjusted operating income. Net revenues totaled $6.1 billion, though a 1.7% decline year-over-year was offset by growth in oral tobacco products. The smokeable products segment saw a 2.5% revenue drop due to reduced shipment volumes, while oral tobacco revenue rose 5.9%, buoyed by pricing gains.

Altria’s adjusted earnings guidance for 2025 was narrowed to $5.35–$5.45 per share, reflecting confidence in its core operations and smoke-free product initiatives. The company repurchased $274 million worth of shares in Q2 and maintained its dividend at $1.7 billion, underscoring commitment to shareholder returns despite regulatory and market headwinds.

Backtest results indicate that Altria’s stock has historically experienced mixed momentum. While it has a moderate VGM Score of D, its earnings estimates have shown a downward trend, suggesting cautious outlooks from analysts. The Zacks Rank #3 (Hold) suggests expectations of in-line performance in the near term, with limited upside potential amid evolving regulatory and competitive pressures.