Altria Profit Down 15%, But In Line - Update

(RTTNews) - Marlboro cigarette maker Altria Group Inc. (MO), Thursday reported a 15 percent drop in profit for the first quarter, as shipments declined, even as last year's results benefited from an adjustment settlement. Nonetheless, both earnings and revenues for the quarter were in line with Wall Street estimates.

Moving ahead, the company lifted its full-year 2014 reported earnings outlook and backed adjusted earnings forecast.

Richmond, Virginia-based Altria's profit for the first quarter earnings declined to $1.18 billion or $0.59 per share from $1.39 billion or $0.69 per share a year ago.

For the first quarter of 2013, the company's cost of sales declined to $483 million or $0.15 per share related to the NPM Adjustment Settlement.

Adjusted earnings for the quarter improved to $0.57 per share from $0.54 per share last year. On average, nine analysts polled by Thomson Reuters expected earnings of $0.57 per share for the quarter. Analysts' estimates typically exclude special items.

Altria's first-quarter revenues edged down 0.2 percent to $5.52 billion from last year's $5.53 billion. Revenues net of excise taxes increased 0.9 percent to $4.0 billion. Seven analysts estimated revenues of $4.03 billion for the quarter.

Altria, which owns Marlboro and L&M brands, said cigarette shipments fell 2.5 percent to 28.7 billion cigarettes during the quarter. Marlboro shipments fell 2.4 percent, other premium cigarette brands dropped 8.6 percent and discount brands rose 0.9 percent. Revenues from Smokeable Products unit dropped 0.2 percent to $4.96 billion.

Looking forward to the fiscal year 2014, the company now expects reported earnings of $2.53 to $2.60 per share, up from prior outlook of $2.51 to $2.58 per share. Altria also reaffirmed its 2014 full-year adjusted earnings outlook of $2.52 to $2.59 per share. Analysts currently expect earnings of $2.56 per share for the quarter.

MO is currently trading at $38.52, up $0.21 or 0.55%, on a volume of 4.61 million shares on the NYSE.