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Factors to Know Ahead of Altria's (MO) Q1 Earnings Release

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·3 min read
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Altria Group, Inc. MO is likely to report top- and bottom-line declines when it releases first-quarter 2021 numbers on Apr 29, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $4,990 million, which suggests a contraction of 1.1% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for the first-quarter bottom line has remained stable in the past 30 days at $1.04 per share, which indicates a decline of 4.6% from the year-ago quarter’s reported figure. Altria’s bottom line missed the Zacks Consensus Estimate by nearly 2% in the last reported quarter. It has a trailing four-quarter earnings surprise of 4.2%, on average.

Key Factors

Altria’s cigarette segment has long been grappling with regulatory hurdles, limiting the marketing and sales of such products. Cigarette shipment volumes, in general, are being impacted by anti-tobacco campaigns and increased consumer awareness regarding the harmful impacts of nicotine. Such headwinds are likely to have been a drag on the company’s first-quarter performance. Additionally, macroeconomic impacts of the pandemic on adult tobacco consumers, such as stay-at-home trends, disposable income, unemployment rates and buying patterns are concerns for the company.

Apart from this, Altria is likely to have continued witnessing sluggishness in its wine business in the to-be-reported quarter. Restrictions on dinning and public gatherings amid the pandemic have been adversely impacting this category.

Nevertheless, higher pricing is likely to have been an upside for Altria in the to-be-reported quarter. It is seen that smokers tend to absorb price increases owing to the addictive quality of cigarettes. The company is likely to have gained from growth in the low-risk and oral tobacco product categories. Markedly, in its noncombustible platform, products such as IQOS and on! have been doing well.

Altria Group, Inc. Price, Consensus and EPS Surprise

Altria Group, Inc. Price, Consensus and EPS Surprise
Altria Group, Inc. Price, Consensus and EPS Surprise

Altria Group, Inc. price-consensus-eps-surprise-chart | Altria Group, Inc. Quote

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Altria this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Altria currently carries a Zacks Rank #3 and an Earnings ESP of -0.76%.

Stocks Poised to Beat Estimates

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.

Sysco Corporation SYY currently has an Earnings ESP of +5.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The J. M. Smucker Company SJM has an Earnings ESP of +1.49% and a Zacks Rank #3, at present.

Tyson Foods, Inc. TSN currently has an Earnings ESP of +16.03% and a Zacks Rank #3.

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Altria Group, Inc. (MO) : Free Stock Analysis Report

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