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Altria Group (MO) Readies for Q4 Earnings: Things to Note
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Altria Group, Inc. (MO - Free Report) is likely to register top and bottom-line growth when it reports fourth-quarter 2022 earnings on Feb 1. The Zacks Consensus Estimate for revenues is pegged at $5,164 million, suggesting a jump of 1.5% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the fourth-quarter bottom line has gone up by a penny in the past 30 days to $1.18 per share. The projection indicates growth of 8.3% from the year-ago quarter’s reported figure.
Altria has a trailing four-quarter earnings surprise of 0.3%, on average. However, this tobacco giant reported a negative earnings surprise of 2.3% in the last reported quarter.
Altria Group, Inc. Price, Consensus and EPS Surprise
Altria has been benefiting from its strong pricing power, which has been fueling the company’s adjusted operating companies’ income for a while. 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. Such trends bode well for the quarter under review.
The company’s focus on oral tobacco, e-vapor and heated tobacco products has also been working well. Altria (through its subsidiary Helix Innovations) has full global ownership of on! — a popular tobacco-derived nicotine (TDN) pouch product. on! is a worthwhile addition to Altria’s smokeless portfolio as oral TDN products are gaining popularity in the United States due to their low-risk claims.
These aspects bode well for Altria amid soft cigarette volumes and escalated costs. The company witnessed increased gas prices and high wage costs in the third quarter.
Further, 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. The view also includes anticipation of the inflation of Master Settlement Agreement expenses, and direct and indirect material costs.
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 chances of an earnings beat, which is the case here.
Altria has a Zacks Rank #3 and an Earnings ESP of +0.14%. 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 three 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:
Performance Food Group Company (PFGC - Free Report) has an Earnings ESP of +0.39% and a Zacks Rank #3. The Zacks Consensus Estimate for its fourth-quarter 2022 earnings is pegged at 76 cents, calling for 33.3% growth from the year-ago period figure. PFGC has a trailing four-quarter earnings surprise of 15.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for Performance Food’s top line is pegged at $13.9 billion, suggesting growth of 8.4% from the prior-year quarter’s reported figure.
Freshpet, Inc. (FRPT - Free Report) is likely to register top and bottom-line growth when it reports fourth-quarter 2022 results. FRPT has an Earnings ESP of +2.04% and a Zacks Rank #3. The Zacks Consensus Estimate for Freshpet’s bottom line has remained unchanged at a loss of 8 cents in the past 30 days, indicating 61.9% growth from the year-ago period reported figure.
FRPT has a trailing four-quarter negative earnings surprise of roughly 88%, on average. The consensus mark for Freshpet’s top line is pegged at $151.1 million, calling for growth of 30.4% from the prior-year quarter’s reported figure.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +3.39% and a Zacks Rank of 3. K is expected to register a top-line improvement when it reports fourth-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.6 billion, calling for growth of 6.7% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 84 cents suggests a 1.2% increase from the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 10.6%, on average.
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Altria Group (MO) Readies for Q4 Earnings: Things to Note
Altria Group, Inc. (MO - Free Report) is likely to register top and bottom-line growth when it reports fourth-quarter 2022 earnings on Feb 1. The Zacks Consensus Estimate for revenues is pegged at $5,164 million, suggesting a jump of 1.5% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the fourth-quarter bottom line has gone up by a penny in the past 30 days to $1.18 per share. The projection indicates growth of 8.3% from the year-ago quarter’s reported figure.
Altria has a trailing four-quarter earnings surprise of 0.3%, on average. However, this tobacco giant reported a negative earnings surprise of 2.3% 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 Consider
Altria has been benefiting from its strong pricing power, which has been fueling the company’s adjusted operating companies’ income for a while. 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. Such trends bode well for the quarter under review.
The company’s focus on oral tobacco, e-vapor and heated tobacco products has also been working well. Altria (through its subsidiary Helix Innovations) has full global ownership of on! — a popular tobacco-derived nicotine (TDN) pouch product. on! is a worthwhile addition to Altria’s smokeless portfolio as oral TDN products are gaining popularity in the United States due to their low-risk claims.
These aspects bode well for Altria amid soft cigarette volumes and escalated costs. The company witnessed increased gas prices and high wage costs in the third quarter.
Further, 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. The view also includes anticipation of the inflation of Master Settlement Agreement expenses, and direct and indirect material costs.
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 chances of an earnings beat, which is the case here.
Altria has a Zacks Rank #3 and an Earnings ESP of +0.14%. 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 three 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:
Performance Food Group Company (PFGC - Free Report) has an Earnings ESP of +0.39% and a Zacks Rank #3. The Zacks Consensus Estimate for its fourth-quarter 2022 earnings is pegged at 76 cents, calling for 33.3% growth from the year-ago period figure. PFGC has a trailing four-quarter earnings surprise of 15.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for Performance Food’s top line is pegged at $13.9 billion, suggesting growth of 8.4% from the prior-year quarter’s reported figure.
Freshpet, Inc. (FRPT - Free Report) is likely to register top and bottom-line growth when it reports fourth-quarter 2022 results. FRPT has an Earnings ESP of +2.04% and a Zacks Rank #3. The Zacks Consensus Estimate for Freshpet’s bottom line has remained unchanged at a loss of 8 cents in the past 30 days, indicating 61.9% growth from the year-ago period reported figure.
FRPT has a trailing four-quarter negative earnings surprise of roughly 88%, on average. The consensus mark for Freshpet’s top line is pegged at $151.1 million, calling for growth of 30.4% from the prior-year quarter’s reported figure.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +3.39% and a Zacks Rank of 3. K is expected to register a top-line improvement when it reports fourth-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.6 billion, calling for growth of 6.7% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 84 cents suggests a 1.2% increase from the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 10.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.