Altria Group reported second-quarter earnings per share of $1.48, missing analyst expectations of $1.50. The company cited macroeconomic uncertainty and weakening demand for premium cigarettes and nicotine pouches.
The results highlight the ongoing challenges Altria faces in shifting consumer preferences towards lower-priced options and alternatives, impacting its core premium cigarette business and signaling potential headwinds for its newer nicotine pouch products.
Altria Group fell short of second-quarter earnings expectations as macroeconomic uncertainty impacted consumer spending, leading to weaker demand for its premium cigarette brands and nicotine pouches. The company reported adjusted earnings per share of $1.48, missing the consensus estimate of $1.50, although revenue net of excise taxes slightly exceeded analyst expectations at $5.36 billion. Shipment volumes for its flagship Marlboro cigarettes declined by 7.4%, and On! nicotine pouches saw a 4.2% decrease in volumes. Conversely, demand for discount cigarette brands surged, with shipment volumes rising by 67.3%. Despite the earnings miss, Altria raised its full-year earnings per share forecast to a range of $5.61 to $5.72, up from its previous target of $5.56 to $5.72.
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