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Altria Shares Dip but Outperform S&P 500 Over the Month

Published 20/10/2023, 05:36 pm
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect
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Altria (NYSE: NYSE:MO), the parent company of Philip Morris (NYSE:PM) USA, experienced a 1.18% drop in its stock price to close at $42.61 on Friday, trailing behind the S&P 500's loss of 0.85%, Dow's loss of 0.75%, and Nasdaq's loss of 0.96%. Despite this recent downturn, Altria's shares have managed to gain 0.19% over the past month, demonstrating resilience against losses in the Consumer Staples sector (4.85%) and S&P 500 (3.02%).

The tobacco giant is scheduled to release its earnings on October 26, 2023. According to Zacks Consensus Estimates, the company is projected to report earnings of $1.29 per share, indicating a year-over-year growth of 0.78%. The revenue forecast stands at $5.48 billion, marking a growth of 1.25%.

For the full fiscal year, Altria's earnings are estimated to reach $4.95 per share, which would represent an increase of 2.27%. The company's annual revenue is projected to total $20.81 billion, up by 0.6% from the previous year.

Zacks currently ranks Altria as a #3 (Hold). The company trades at a forward price-to-earnings (P/E) ratio of 8.71, slightly lower than the industry average of 8.84. Its price/earnings to growth (PEG) ratio is reported to be 2.33, which is above the Tobacco industry average of 2.21.

According to InvestingPro data, Altria has a market cap of 75.62B USD and a P/E ratio of 11.2. The company's revenue for the last twelve months is reported at 20.58B USD, with a gross profit of 14.29B USD. Altria also boasts an impressive gross profit margin of 69.44% and an operating income margin of 58.34%.

InvestingPro Tips highlights Altria's high earnings quality, with its free cash flow exceeding net income. The company also has a record of consistently increasing earnings per share and a high shareholder yield. Of note is Altria's impressive track record of maintaining dividend payments for 53 consecutive years and it has raised its dividend for 13 consecutive years. These factors may be appealing to investors seeking stable returns.

Despite these strengths, it's important to note that Altria's revenue has been declining at an accelerating rate, according to InvestingPro Tips. Additionally, 4 analysts have revised their earnings downwards for the upcoming period, which may impact the company's performance.

InvestingPro offers many more insights and tips, which can be accessed by subscribing to their Pro Pricing plan. This product offers investors a wealth of information to make informed decisions about their investments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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