Altria Group Sees Higher FY24 Earnings; To Buy Back $1 Bln Shares - Update

(RTTNews) - Tobacco company Altria Group, Inc. (MO), while reporting weak profit in its fourth quarter, but above market estimates, Thursday said it expects higher adjusted earnings in fiscal 2024. Further, the Board of Directors authorized a new $1 billion share repurchase program, which is expected to complete by December 31, 2024.

For fiscal 2024, the company projects adjusted earnings per share in a range of $5.00 to $5.15, representing a growth rate of 1% to 4% from a $4.95 base in 2023.

Analysts on average expect the company to report earnings of $5.08 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The adjusted earnings growth in the year is expected to be weighted to the second half of the year.

The outlook excludes an estimated per share gain of $1.14 related to the sale of the IQOS Tobacco Heating System commercialization rights that are expected to occur in the second quarter of 2024.

In its fourth quarter, the company's bottom line came in at $2.06 billion, or $1.16 per share. This compares with $2.69 billion, or $1.50 per share, in last year's fourth quarter.

Adjusted earnings were $2.08 billion or $1.18 per share for the period. Analysts had expected the company to earn $1.17 per share.

The company's revenue for the quarter fell 2.1% to $5.98 billion from $6.11 billion last year.

In pre-market activity on the NYSE, Altria shares were trading at $40.61, up 1.22%.

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