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Altria Group (MO) Readies for Q2 Earnings: What to Expect?
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Altria Group, Inc. (MO - Free Report) is likely to register a top-line decline when it reports second-quarter 2022 earnings on Jul 28. The Zacks Consensus Estimate for quarterly revenues is pegged at $5,397 million, suggesting a decline of 3.9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has increased by a penny in the past 30 days to $1.25 per share, suggesting a rise of 1.6% from the figure reported in the prior-year quarter. This tobacco products behemoth has a trailing four-quarter earnings surprise of 1.2%, on average. MO delivered an earnings surprise of 2.8% in the last reported quarter.
Altria Group, Inc. Price, Consensus and EPS Surprise
Altria has been benefiting from its robust pricing actions. Though higher pricing might lead to a possible decline in cigarette consumption, it is seen that smokers tend to absorb price increases due to the addictive quality of cigarettes. In the first quarter of 2022, higher pricing supported revenues across the Smokeable Products and Oral Tobacco categories. Moreover, higher pricing aided the adjusted operating companies income in both segments. The continuation of such trends is likely to have remained an upside for Altria.
The company is also benefiting from its focus on expanding oral tobacco and heated tobacco products, given consumers’ rising inclination toward the same. To this end, on! has been a worthwhile addition to Altria’s smokeless portfolio, as oral tobacco-derived nicotine products are gaining popularity in the United States due to their low-risk claims.
However, management’s bottom-line view for 2022 takes into account planned investments associated with costs to improve the digital consumer engagement system, enhanced smoke-free product research, development and regulatory preparation expenses and marketplace activities to support MO’s smoke-free products. This also raises concerns for the quarter under review.
Russia’s invasion of Ukraine worsened the rising global energy price scenario, which, along with other macroeconomic factors like demand-supply imbalances and the shortage of labor, led to a historic spike in the inflation rate. Apart from this, the pandemic-led volatility continues to impact the global economy in terms of supply-chain bottlenecks and changing consumer behavior. On its first-quarter earnings call, management stated that it expects inflation to linger in the balance of the year as it continues to assess its impact on tobacco consumers.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Altria this time. 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, which is the case here.
Altria carries a Zacks Rank #3 and has an Earnings ESP of +0.27%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are some other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.
Corteva (CTVA - Free Report) currently has an Earnings ESP of +0.20% and a Zacks Rank of 1. The company is likely to register an increase in the bottom line when it reports second-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings has risen by a penny over the past seven days to $1.47 per share in the past 30 days. The consensus mark for CTVA’s earnings suggests 5% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Corteva’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.2 billion, which suggests a rise of 9.8% from the figure reported in the prior-year quarter. CTVA delivered an earnings beat of 22.3%, on average, in the trailing four quarters.
Hershey (HSY - Free Report) currently has an Earnings ESP of +0.08% and a Zacks Rank of 1. The company is likely to register an increase in the top and bottom lines when it reports second-quarter 2022 results. The Zacks Consensus Estimate for HSY’s quarterly earnings has moved up by a penny in the past 30 days to $1.67 per share. The consensus mark indicates 13.6% growth from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for quarterly revenues is pegged at $2.2 billion, which suggests a rise of 11.7% from the figure reported in the prior-year quarter. Hershey delivered an earnings beat of 7.9%, on average, in the trailing four quarters.
Tyson Foods (TSN - Free Report) currently has an Earnings ESP of +5.71% and a Zacks Rank of 3. The company is likely to register a rise in the top line when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for TSN’s quarterly revenues is pegged at $13.4 billion, which suggests a jump of 7% from the figure reported in the prior-year quarter.
The consensus mark for Tyson Foods’ quarterly earnings has moved down from $1.92 to $1.88 per share in the past 30 days. The consensus estimate for TSN’s third-quarter earnings suggests a decline of 30.4% from the year-ago quarter’s reported figure. Tyson Foods delivered an earnings beat of 33.3%, on average, in the trailing four quarters.
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Altria Group (MO) Readies for Q2 Earnings: What to Expect?
Altria Group, Inc. (MO - Free Report) is likely to register a top-line decline when it reports second-quarter 2022 earnings on Jul 28. The Zacks Consensus Estimate for quarterly revenues is pegged at $5,397 million, suggesting a decline of 3.9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has increased by a penny in the past 30 days to $1.25 per share, suggesting a rise of 1.6% from the figure reported in the prior-year quarter. This tobacco products behemoth has a trailing four-quarter earnings surprise of 1.2%, on average. MO delivered an earnings surprise of 2.8% in the last reported quarter.
Altria Group, Inc. Price, Consensus and EPS Surprise
Altria Group, Inc. price-consensus-eps-surprise-chart | Altria Group, Inc. Quote
Factors to Note
Altria has been benefiting from its robust pricing actions. Though higher pricing might lead to a possible decline in cigarette consumption, it is seen that smokers tend to absorb price increases due to the addictive quality of cigarettes. In the first quarter of 2022, higher pricing supported revenues across the Smokeable Products and Oral Tobacco categories. Moreover, higher pricing aided the adjusted operating companies income in both segments. The continuation of such trends is likely to have remained an upside for Altria.
The company is also benefiting from its focus on expanding oral tobacco and heated tobacco products, given consumers’ rising inclination toward the same. To this end, on! has been a worthwhile addition to Altria’s smokeless portfolio, as oral tobacco-derived nicotine products are gaining popularity in the United States due to their low-risk claims.
However, management’s bottom-line view for 2022 takes into account planned investments associated with costs to improve the digital consumer engagement system, enhanced smoke-free product research, development and regulatory preparation expenses and marketplace activities to support MO’s smoke-free products. This also raises concerns for the quarter under review.
Russia’s invasion of Ukraine worsened the rising global energy price scenario, which, along with other macroeconomic factors like demand-supply imbalances and the shortage of labor, led to a historic spike in the inflation rate. Apart from this, the pandemic-led volatility continues to impact the global economy in terms of supply-chain bottlenecks and changing consumer behavior. On its first-quarter earnings call, management stated that it expects inflation to linger in the balance of the year as it continues to assess its impact on tobacco consumers.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Altria this time. 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, which is the case here.
Altria carries a Zacks Rank #3 and has an Earnings ESP of +0.27%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are some other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.
Corteva (CTVA - Free Report) currently has an Earnings ESP of +0.20% and a Zacks Rank of 1. The company is likely to register an increase in the bottom line when it reports second-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings has risen by a penny over the past seven days to $1.47 per share in the past 30 days. The consensus mark for CTVA’s earnings suggests 5% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Corteva’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.2 billion, which suggests a rise of 9.8% from the figure reported in the prior-year quarter. CTVA delivered an earnings beat of 22.3%, on average, in the trailing four quarters.
Hershey (HSY - Free Report) currently has an Earnings ESP of +0.08% and a Zacks Rank of 1. The company is likely to register an increase in the top and bottom lines when it reports second-quarter 2022 results. The Zacks Consensus Estimate for HSY’s quarterly earnings has moved up by a penny in the past 30 days to $1.67 per share. The consensus mark indicates 13.6% growth from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for quarterly revenues is pegged at $2.2 billion, which suggests a rise of 11.7% from the figure reported in the prior-year quarter. Hershey delivered an earnings beat of 7.9%, on average, in the trailing four quarters.
Tyson Foods (TSN - Free Report) currently has an Earnings ESP of +5.71% and a Zacks Rank of 3. The company is likely to register a rise in the top line when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for TSN’s quarterly revenues is pegged at $13.4 billion, which suggests a jump of 7% from the figure reported in the prior-year quarter.
The consensus mark for Tyson Foods’ quarterly earnings has moved down from $1.92 to $1.88 per share in the past 30 days. The consensus estimate for TSN’s third-quarter earnings suggests a decline of 30.4% from the year-ago quarter’s reported figure. Tyson Foods delivered an earnings beat of 33.3%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.