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Altria Group, Inc. (MO - Free Report) concluded the divestiture of a portion of its stake in Anheuser-Busch InBev SA/NA. Concurrently, the tobacco behemoth expanded its share repurchase program. Taking these into account, the company raised its bottom-line view for 2024.
More on Divestiture
Altria divested 35 million shares of Anheuser-Busch InBev SA/NA via a global secondary offering. The deal includes a public offering of ABI ordinary shares represented by American depositary shares (ADS) in the United States, a public offering of ABI ordinary shares in the United States, simultaneous private placement of ABI ordinary shares in the European Economic Area and the U.K. and an offering of ABI ordinary shares encompassing those represented by ADS in other international markets. Also, ABI will repurchase $200 million worth of ordinary shares directly from Altria upon completing the offering.
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Expanded Share Buyback Plan
Altria has been keen on returning wealth to its investors to create long-term shareholder value. Moving along these lines, the company authorized a $2.4-billion increase to the existing $1-billion share repurchase program. Management expects the expanded plan to be completed by Dec 31, 2024. Apart from this, the company highlighted that it is committed to its progressive dividend goal, which targets annual mid-single-digit dividend per share growth through 2028.
Raised Earnings View
For 2024, Altria envisions adjusted earnings per share (EPS) in the range of $5.00-$5.17, indicating growth of 2-4.5% from $4.95 reported in the year-ago period. The company had earlier expected the metric to come in at $5.00-$5.15. The raised outlook reflects the projection of lower weighted-average shares outstanding for 2024, somewhat offset by reduced equity earnings associated with the divestiture mentioned above.
The bottom-line view also considers planned investments associated with enhanced smoke-free product research, development and marketplace activities to support MO’s smoke-free products. Management highlighted that it expects 2024 adjusted EPS growth to be skewed toward the back half of the year.
Shares of this Zacks Rank #3 (Hold) company have risen 4.9% in the past three months against the industry’s decline of 1.7%.
The Zacks Consensus Estimate for The Chef’s Warehouse’s current fiscal-year sales and earnings suggests growth of 8.7% and 4.7%, respectively, from the year-ago reported numbers.
Vital Farms Inc. (VITL - Free Report) offers a range of produced pasture-raised foods. It currently carries a Zacks Rank #2. VITL has a trailing four-quarter average earnings surprise of 155.4%.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings suggests growth of 21.8% and 28.8%, respectively, from the year-ago reported numbers.
Utz Brands Inc. (UTZ - Free Report) manufactures a diverse portfolio of salty snacks, currently carrying a Zacks Rank #2. UTZ has a trailing four-quarter earnings surprise of 2.6% on average.
The Zacks Consensus Estimate for Utz Brands’ current financial-year earnings suggests growth of 19.3% from the year-ago reported numbers.
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Altria (MO) Ups Earnings View, Expands Share Buyback Plans
Altria Group, Inc. (MO - Free Report) concluded the divestiture of a portion of its stake in Anheuser-Busch InBev SA/NA. Concurrently, the tobacco behemoth expanded its share repurchase program. Taking these into account, the company raised its bottom-line view for 2024.
More on Divestiture
Altria divested 35 million shares of Anheuser-Busch InBev SA/NA via a global secondary offering. The deal includes a public offering of ABI ordinary shares represented by American depositary shares (ADS) in the United States, a public offering of ABI ordinary shares in the United States, simultaneous private placement of ABI ordinary shares in the European Economic Area and the U.K. and an offering of ABI ordinary shares encompassing those represented by ADS in other international markets. Also, ABI will repurchase $200 million worth of ordinary shares directly from Altria upon completing the offering.
Image Source: Zacks Investment Research
Expanded Share Buyback Plan
Altria has been keen on returning wealth to its investors to create long-term shareholder value. Moving along these lines, the company authorized a $2.4-billion increase to the existing $1-billion share repurchase program. Management expects the expanded plan to be completed by Dec 31, 2024. Apart from this, the company highlighted that it is committed to its progressive dividend goal, which targets annual mid-single-digit dividend per share growth through 2028.
Raised Earnings View
For 2024, Altria envisions adjusted earnings per share (EPS) in the range of $5.00-$5.17, indicating growth of 2-4.5% from $4.95 reported in the year-ago period. The company had earlier expected the metric to come in at $5.00-$5.15. The raised outlook reflects the projection of lower weighted-average shares outstanding for 2024, somewhat offset by reduced equity earnings associated with the divestiture mentioned above.
The bottom-line view also considers planned investments associated with enhanced smoke-free product research, development and marketplace activities to support MO’s smoke-free products. Management highlighted that it expects 2024 adjusted EPS growth to be skewed toward the back half of the year.
Shares of this Zacks Rank #3 (Hold) company have risen 4.9% in the past three months against the industry’s decline of 1.7%.
Solid Staple Picks
The Chef’s Warehouse (CHEF - Free Report) , which engages in the distribution of specialty food products, currently carries a Zacks Rank #2 (Buy). CHEF has a trailing four-quarter earnings surprise of 3.2%, on average. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The Zacks Consensus Estimate for The Chef’s Warehouse’s current fiscal-year sales and earnings suggests growth of 8.7% and 4.7%, respectively, from the year-ago reported numbers.
Vital Farms Inc. (VITL - Free Report) offers a range of produced pasture-raised foods. It currently carries a Zacks Rank #2. VITL has a trailing four-quarter average earnings surprise of 155.4%.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings suggests growth of 21.8% and 28.8%, respectively, from the year-ago reported numbers.
Utz Brands Inc. (UTZ - Free Report) manufactures a diverse portfolio of salty snacks, currently carrying a Zacks Rank #2. UTZ has a trailing four-quarter earnings surprise of 2.6% on average.
The Zacks Consensus Estimate for Utz Brands’ current financial-year earnings suggests growth of 19.3% from the year-ago reported numbers.