Altria Group Narrows 2021 Adj. Earnings Guidance; Q3 Profit Misses Estimates

(RTTNews) - While reporting third-quarter results on Thursday, Altria Group, Inc. (MO) increased the lower-end of its full-year 2021 guidance and now expects adjusted earnings per share in a range of $4.58 to $4.62. This range represents a growth rate of 5% to 6% from prior year. The company previously projected full-year adjusted EPS in the range of $4.56 to $4.62.

Analysts polled by Thomson Reuters expect the company to report profit per share of $4.62. Analysts' estimates typically exclude special items.

Altria expects its 2021 capital expenditures to be between $150 million and $200 million, revised from prior guidance of $200 million to $250 million. The company's Board authorized the expansion of its existing $2 billion share repurchase program to $3.5 billion. Altria expects to complete the expanded program by December 31, 2022.

Third quarter adjusted earnings per share increased 2.5%, primarily driven by higher adjusted earnings from Altria's equity investment in ABI, favorable net periodic benefit income, lower adjusted income tax rate, lower interest expense and fewer shares outstanding, partially offset by lower adjusted OCI. Net revenues decreased 4.7%, primarily driven by lower net revenues in the smokeable products segment.

Third-quarter adjusted profit per share was $1.22 compared to $1.19, prior year. On average, 14 analysts polled by Thomson Reuters expected the company to report profit per share of $1.26, for the quarter.

Net loss was $2.72 billion or $1.48 per share compared to a loss of $952 million or $0.51 per share. The company said this was primarily driven by lower reported earnings from investment in ABI and lower reported operating companies income. Revenue were down 4.7% to $6.79 billion. Revenues net of excise taxes decreased 2.6% to $5.53 billion. Analysts expected revenue of $5.73 billion, for the quarter.

Shares of Altria Group were down 1% in pre-market trade on Thursday.