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Altria (MO) Lined Up for Q2 Earnings: Key Things to Note

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Altria Group, Inc. (MO - Free Report) is likely to report top and bottom-line growth, when it reports second-quarter 2021 numbers on Jul 29. The Zacks Consensus Estimate for revenues currently stands at $5,362 million, suggesting an increase of 5.9% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for earnings has remained stable over the past 30 days at $1.17 per share, which suggests growth of 7.3% from the figure reported in the prior-year period. The company has a trailing four-quarter earnings surprise of 1.8%, on average. In the last reported quarter, Altria posted an earnings surprise of 2.9%.

Altria Group, Inc. Price, Consensus and EPS Surprise

Altria Group, Inc. Price, Consensus and EPS Surprise

Altria Group, Inc. price-consensus-eps-surprise-chart | Altria Group, Inc. Quote

Key Factors to Note

Altria’s solid pricing power has been working well and aiding its adjusted operating companies’ income. Though higher pricing might lead to a possible decline in cigarette consumption, it is seen that smokers tend to absorb price increases owing to the addictive quality of cigarettes.

The company is also benefiting from its efforts to bolster presence in the growing reduced risk products or RRPs space, given consumers’ increased shift toward this category. Altria has been responding to the changing market scenario by offering several oral tobacco products. Markedly, growth in the noncombustible business has been backed by the launch of IQOS as well as the commercialization of on! These have been boosting the company’s oral tobacco products segment. The Zacks Consensus Estimate for second-quarter oral tobacco product revenues is pegged at $670 million compared with $660 million reported in the year-ago period.

However, Altria’s smokeable products category has been bearing the brunt of reduced shipment volumes. Cigarette shipment volumes, in general, have been 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. The consensus mark for smokeable product revenues for the second quarter stands at $5,940 million currently compared with $5,603 million recorded in the same period last year.

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 -0.17%.

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.

Mondelez International (MDLZ - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Medifast (MED - Free Report) has an Earnings ESP of +7.27% and a Zacks Rank of 2.

Kellogg (K - Free Report) has an Earnings ESP of +0.61% and a Zacks Rank #3.

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