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Altria Group, Inc. (MO - Free Report) is likely to register a bottom-line decline when it reports fourth-quarter 2023 earnings on Feb 1. The consensus mark for quarterly earnings has remained unchanged in the past 30 days at $1.17 per share. This indicates a decline of 0.9% from the year-ago quarter’s reported figure. MO has a trailing four-quarter negative earnings surprise of 0.4%, on average.
The Zacks Consensus Estimate for revenues is pegged at $5.1 billion, suggesting a slight increase from the prior-year quarter’s reported figure of $5.08 billion.
Factors to Consider
The overall cigarette industry has been bearing the brunt of the inflationary environment, which has affected Adult Tobacco Consumers’ (“ATC”) spending patterns. This has been affecting cigarette consumption and volumes. We note that Altria has been witnessing a decline in its Smokeable Product segment revenues for the past few quarters. In the third quarter of 2023, the company’s Smokeable Products segment revenues were hurt by soft domestic cigarette shipment volumes, which tumbled 11.6%, mainly due to the industry’s decline rate and retail share losses, trade inventory movements and calendar differences.
Though Altria’s third-quarter results reflect its resilience in a tough macroeconomic landscape, the impact of overall inflation on ATC spending patterns remains a concern. The Zacks Consensus Estimate for fourth-quarter revenues for the Smokeable Products segment is pegged at $5,296 million, suggesting a drop from $5,456 million reported in the year-ago period.
Altria Group, Inc. Price, Consensus and EPS Surprise
Management narrowed its guidance range for the full year 2023 in its third-quarter earnings release. It now envisions the adjusted EPS in the range of $4.91-$4.98, indicating growth of 1.5-3% from the $4.84 recorded in 2022. The bottom-line view for 2023 considers planned investments associated with costs to improve the digital consumer engagement system and enhanced smoke-free product research, development and marketplace activities to support the company’s smoke-free products (including investments related to the commercialization of ACE in the United States).
However, Altria has been benefiting from its strong pricing power. 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. Additionally, the company’s focus on oral tobacco, e-vapor and heated tobacco offerings has been helping as consumers are increasingly gravitating toward reduced-risk products or smoke-free alternatives. on! has been a valuable addition to the company's smoke-free product portfolio.
What the Zacks Model Unveils
Our proven model does not conclusively predict 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 not the case here.
Altria has an Earnings ESP of -1.75%, and it carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies worth considering as our model shows that these have the correct combination to beat on earnings this time:
Inter Parfums (IPAR - Free Report) currently has an Earnings ESP of +11.27% and a Zacks Rank of 2. The company is likely to register a top-line increase when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Inter Parfums’ quarterly revenues is pegged at $329.1 million, indicating a rise of 5.9% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Inter Parfums’ quarterly earnings of 35 cents suggests a decrease of 50.7% from the year-ago quarter’s levels. IPAR has a trailing four-quarter earnings surprise of 45.7%, on average.
Mondelez International (MDLZ - Free Report) currently has an Earnings ESP of +0.62% and a Zacks Rank #3. The company is likely to register top-and-bottom-line growth when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $9.3 billion, indicating a rise of roughly 7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Mondelez’s quarterly earnings of 78 cents suggests an increase of 6.9% from the year-ago quarter’s levels. MDLZ has a trailing four-quarter earnings surprise of 7.3%, on average.
The Estee Lauder Companies (EL - Free Report) has an Earnings ESP of +3.55% and a Zacks Rank #3. The company is likely to witness top-and-bottom-line decline when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for Estee Lauder’s quarterly revenues is pegged at $4.2 billion, which suggests a drop of 9.2% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Estee Lauder’s quarterly EPS has remained unchanged in the past 30 days at 55 cents, which suggests a decrease of 64.3% from the year-ago quarter’s level. EL has a trailing four-quarter earnings surprise of 110.1%, on average.
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Altria's (MO) Q4 Earnings Coming Up: Factors Worth Noting
Altria Group, Inc. (MO - Free Report) is likely to register a bottom-line decline when it reports fourth-quarter 2023 earnings on Feb 1. The consensus mark for quarterly earnings has remained unchanged in the past 30 days at $1.17 per share. This indicates a decline of 0.9% from the year-ago quarter’s reported figure. MO has a trailing four-quarter negative earnings surprise of 0.4%, on average.
The Zacks Consensus Estimate for revenues is pegged at $5.1 billion, suggesting a slight increase from the prior-year quarter’s reported figure of $5.08 billion.
Factors to Consider
The overall cigarette industry has been bearing the brunt of the inflationary environment, which has affected Adult Tobacco Consumers’ (“ATC”) spending patterns. This has been affecting cigarette consumption and volumes. We note that Altria has been witnessing a decline in its Smokeable Product segment revenues for the past few quarters. In the third quarter of 2023, the company’s Smokeable Products segment revenues were hurt by soft domestic cigarette shipment volumes, which tumbled 11.6%, mainly due to the industry’s decline rate and retail share losses, trade inventory movements and calendar differences.
Though Altria’s third-quarter results reflect its resilience in a tough macroeconomic landscape, the impact of overall inflation on ATC spending patterns remains a concern. The Zacks Consensus Estimate for fourth-quarter revenues for the Smokeable Products segment is pegged at $5,296 million, suggesting a drop from $5,456 million reported in the year-ago period.
Altria Group, Inc. Price, Consensus and EPS Surprise
Altria Group, Inc. price-consensus-eps-surprise-chart | Altria Group, Inc. Quote
Management narrowed its guidance range for the full year 2023 in its third-quarter earnings release. It now envisions the adjusted EPS in the range of $4.91-$4.98, indicating growth of 1.5-3% from the $4.84 recorded in 2022. The bottom-line view for 2023 considers planned investments associated with costs to improve the digital consumer engagement system and enhanced smoke-free product research, development and marketplace activities to support the company’s smoke-free products (including investments related to the commercialization of ACE in the United States).
However, Altria has been benefiting from its strong pricing power. 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. Additionally, the company’s focus on oral tobacco, e-vapor and heated tobacco offerings has been helping as consumers are increasingly gravitating toward reduced-risk products or smoke-free alternatives. on! has been a valuable addition to the company's smoke-free product portfolio.
What the Zacks Model Unveils
Our proven model does not conclusively predict 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 not the case here.
Altria has an Earnings ESP of -1.75%, and it carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies worth considering as our model shows that these have the correct combination to beat on earnings this time:
Inter Parfums (IPAR - Free Report) currently has an Earnings ESP of +11.27% and a Zacks Rank of 2. The company is likely to register a top-line increase when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Inter Parfums’ quarterly revenues is pegged at $329.1 million, indicating a rise of 5.9% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Inter Parfums’ quarterly earnings of 35 cents suggests a decrease of 50.7% from the year-ago quarter’s levels. IPAR has a trailing four-quarter earnings surprise of 45.7%, on average.
Mondelez International (MDLZ - Free Report) currently has an Earnings ESP of +0.62% and a Zacks Rank #3. The company is likely to register top-and-bottom-line growth when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $9.3 billion, indicating a rise of roughly 7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Mondelez’s quarterly earnings of 78 cents suggests an increase of 6.9% from the year-ago quarter’s levels. MDLZ has a trailing four-quarter earnings surprise of 7.3%, on average.
The Estee Lauder Companies (EL - Free Report) has an Earnings ESP of +3.55% and a Zacks Rank #3. The company is likely to witness top-and-bottom-line decline when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for Estee Lauder’s quarterly revenues is pegged at $4.2 billion, which suggests a drop of 9.2% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Estee Lauder’s quarterly EPS has remained unchanged in the past 30 days at 55 cents, which suggests a decrease of 64.3% from the year-ago quarter’s level. EL has a trailing four-quarter earnings surprise of 110.1%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.