We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's How Altria (MO) is Placed Just Ahead of Q2 Earnings
Read MoreHide Full Article
Altria Group, Inc. (MO - Free Report) is slated to release second-quarter 2020 results on Jul 23. This tobacco giant delivered an earnings surprise of 12.4% in the last reported quarter. Notably, Altria has a trailing four-quarter earnings surprise of 2%, on average.
The Zacks Consensus Estimate for earnings in the second quarter has gone up a penny to $1.04 per share over the past seven days. However, this suggests a decline of 5.5% from the figure reported in the year-ago period. The consensus mark for revenues stands at $5,066 million, indicating a drop of 2.5% from the year-ago period’s reported figure.
Altria’s cigarette shipment volumes have been a concern. Cigarette shipment volumes are being adversely impacted by anti-tobacco campaigns and increased consumer awareness regarding the harmful impacts of tobacco consumption. Regulatory hurdles are also a vital factor limiting the marketing of cigarettes, thereby adversely impacting its sales volume. This has been hurting Altria’s smokeable product category. Such industry-wide headwinds are likely to have persisted in the quarter under review.
Also, wine sales are likely to have been affected by the coronavirus-led social distancing and temporary closure of restaurants, cruise lines, bars and other avenues. The consensus mark for second-quarter net revenues for Smokeable Products and Wine segments is pegged at $5,698 million and $150 million compared with the year-ago quarter’s reported figures of $5,853 million and $165 million, respectively.
Strong pricing has been an upside for Altria. Though higher pricing might lead to a decline in cigarette consumption, it is seen that smokers tend to absorb price increases owing to the addictive quality of cigarettes. Apart from this, the company’s focus on bolstering its presence in the oral tobacco space in the face of receding cigarette volumes bodes well. In this respect, the marketing and technology sharing agreement between Altria and Philip Morris, pertaining to the commercialization of IQOS in the United States, was approved by the FDA in 2019.
Additionally, Altria (through its subsidiary Helix Innovations) acquired an 80% stake in certain companies of Burger Group, which is engaged in the commercialization of the oral tobacco-derived nicotine (TDN) pouch product — on! Management believes that on! is a worthwhile addition to Altria’s smokeless portfolio. The Zacks Consensus Estimate for second-quarter Oral Tobacco Products revenues stands at $625 million, up from $602 million reported in the year-ago period.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Altria this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Nu Skin (NUS - Free Report) has an Earnings ESP of +13.74% and a Zacks Rank #1.
B&G Foods (BGS - Free Report) has an Earnings ESP of +1.56% and a Zacks Rank #2.
Kellogg (K - Free Report) has an Earnings ESP of +1.23% and a Zacks Rank #3.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Here's How Altria (MO) is Placed Just Ahead of Q2 Earnings
Altria Group, Inc. (MO - Free Report) is slated to release second-quarter 2020 results on Jul 23. This tobacco giant delivered an earnings surprise of 12.4% in the last reported quarter. Notably, Altria has a trailing four-quarter earnings surprise of 2%, on average.
The Zacks Consensus Estimate for earnings in the second quarter has gone up a penny to $1.04 per share over the past seven days. However, this suggests a decline of 5.5% from the figure reported in the year-ago period. The consensus mark for revenues stands at $5,066 million, indicating a drop of 2.5% from the year-ago period’s reported figure.
Altria Group, Inc. Price and EPS Surprise
Altria Group, Inc. price-eps-surprise | Altria Group, Inc. Quote
Key Factors to Note
Altria’s cigarette shipment volumes have been a concern. Cigarette shipment volumes are being adversely impacted by anti-tobacco campaigns and increased consumer awareness regarding the harmful impacts of tobacco consumption. Regulatory hurdles are also a vital factor limiting the marketing of cigarettes, thereby adversely impacting its sales volume. This has been hurting Altria’s smokeable product category. Such industry-wide headwinds are likely to have persisted in the quarter under review.
Also, wine sales are likely to have been affected by the coronavirus-led social distancing and temporary closure of restaurants, cruise lines, bars and other avenues. The consensus mark for second-quarter net revenues for Smokeable Products and Wine segments is pegged at $5,698 million and $150 million compared with the year-ago quarter’s reported figures of $5,853 million and $165 million, respectively.
Strong pricing has been an upside for Altria. Though higher pricing might lead to a decline in cigarette consumption, it is seen that smokers tend to absorb price increases owing to the addictive quality of cigarettes. Apart from this, the company’s focus on bolstering its presence in the oral tobacco space in the face of receding cigarette volumes bodes well. In this respect, the marketing and technology sharing agreement between Altria and Philip Morris, pertaining to the commercialization of IQOS in the United States, was approved by the FDA in 2019.
Additionally, Altria (through its subsidiary Helix Innovations) acquired an 80% stake in certain companies of Burger Group, which is engaged in the commercialization of the oral tobacco-derived nicotine (TDN) pouch product — on! Management believes that on! is a worthwhile addition to Altria’s smokeless portfolio. The Zacks Consensus Estimate for second-quarter Oral Tobacco Products revenues stands at $625 million, up from $602 million reported in the year-ago period.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Altria this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Altria currently has a Zacks Rank #3 and an Earnings ESP of -0.78%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With Favorable Combinations
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Nu Skin (NUS - Free Report) has an Earnings ESP of +13.74% and a Zacks Rank #1.
B&G Foods (BGS - Free Report) has an Earnings ESP of +1.56% and a Zacks Rank #2.
Kellogg (K - Free Report) has an Earnings ESP of +1.23% and a Zacks Rank #3.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>