Join        Login             Stock Quote

Altria (MO) Q4 Profit Rises 32%, Guides 2013 EPS In Line With Street

 January 31, 2013 07:43 AM

(By Mani) Cigarette maker Altria Group, Inc. (NYSE: MO) said its fourth-quarter profit rose 32 percent and matched consensus view on lower costs and charges. The company has guided its 2013 profit in line with Street expectations.

Altira, which owns well-known brands such as Marlboro, Copenhagen, Skoal and Black & Mild, earned $1.1 billion, or 55 cents a share, higher than $836 million, or 41 cents a share, in the fourth quarter of 2011.

The results were boosted by lower charges, litigation costs, and marketing expenses. Excluding items also, it earned 55 cents a share, which came in line with analysts' consensus estimate.

Net revenues rose 1.8 percent to $6.24 billion, while analysts expected revenue of $4.33 billion. Higher revenues were primarily attributable to higher net revenues from smokeable products, partially offset by lower revenues from financial services.

The smokeless products segment' fourth-quarter net revenues increased 7.2 percent, primarily due to higher pricing and higher volume, partially offset by unfavorable mix due to growth in products introduced in recent years at a lower, popular price.

The Philip Morris USA unit expects to record a corresponding increase in its reported pre-tax earnings if the Master Settlement Agreement (MSA) proceeds with 17 states, District of Columbia and Puerto Rico.

The agreement includes a release to the signatory states of their portion of more than $4 billion from the MSA disputed payment account. In return, the manufacturers will receive reductions in future MSA payments. Based on the current signatory states, PM USA estimates its reductions to be about $450 million, all of which it expects to receive as a credit against its April 2013 MSA payment.

For 2013, Altria forecasts reported earnings of $2.34 to $2.40 a share. Full-year adjusted earnings are estimated to be in the range of $2.35 to $2.41, representing a growth rate of 6 to 9 percent from an adjusted earnings of $2.21 in 2012. Analysts expect earnings of $2.38 a share for 2013.

While there are signs of modest improvement in certain economic indicators, Altria remain cautious about the 2013 business environment. Adult consumers remain under economic pressure as they face the end of the payroll tax holiday, as well as continuing, high unemployment. With a number of states facing budget shortfalls, tobacco products will remain a target for excise tax increases.


iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageChicago Fed: Slowest US Growth In Nearly 3 Years

Economic activity in March slumped to the softest pace in 31 months, according to this morning’s update of read on...

article imageHas The Fed Already Lost?

Increasingly we live in a world of Now. Instantaneous access to digital real time data and news has simply read on...

article imageOn Being A Forced Seller in a Panic

No one wants to be a forced seller in a panic. So how does anyone get into that situation?  Two things: bad read on...

article imageECB's Quantitative Easing - QuitE Wrong

The eurozone has been doing fine without the ECB’s read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.