Altria Group Inc (NYSE:MO) announced its financial results for the third quarter of fiscal year 2015 (3QFY15) before the opening bell today.
Advertisement
The company’s smokeless product segment, which is driven by moist snuff brands Copenhagen and Skoal, increased revenue after excise tax 4.2% to $448 million.
The maker of the Marlboro brand had seen strong volumes lately as tobacco consumers benefited from low gas prices and an improving economy. Cigar shipments from the Middleton segment gained 1.2%. Shipment volumes rose 0.9% for the quarter, as Copenhagen’s gains overcame weakness from Skoal and other brands. Net income climbed at double that growth rate, hitting $1.53 billion and working out to $0.78 per share, which was $0.03 per share greater than the consensus estimate among investors.
Altria rose 0.7 percent to $61.90 at 7:07 a.m.in early trading in New York. Altria said it expects moderated adjusted EPS results in the fourth quarter of 2015 versus the prior year. Earnings, adjusted for non-recurring gains, came to 75 cents per share.
Cheaper gas is helping the Marlboro maker’s sales as smokers buy more cigarettes and trade up to premium brands. Net revenue after excise taxes rose 4.7% to $4.98 billion from $4.75 billion in the year-earlier period.
President and CEO Marty Barrington said in a press release: “Altria continued to deliver outstanding performance in the third quarter and for the first nine months”. Barrington also lauded the potential combination of SABMiller and Anheuser-Busch InBev, citing it “as a compelling opportunity to strengthen for our shareholders our position in the global brewing business”.
The company reaffirmed its guidance for the 2015 full year EPS to be in the range of $2.76 to $2.81, compared to the consensus estimate of $2.82 in EPS.
Advertisement
Altria, the U.S.’s largest tobacco company, faces stronger competition from No. 2 player Reynolds American Inc., which in June closed a $25 billion acquisition of rival Lorillard Inc.
