|Bid||0.00 x 800|
|Ask||70.00 x 4000|
|Day's Range||57.09 - 57.74|
|52 Week Range||53.91 - 74.38|
|PE Ratio (TTM)||10.24|
|Earnings Date||Jul 26, 2018|
|Forward Dividend & Yield||2.80 (4.83%)|
|1y Target Est||68.24|
Altria Group Inc. says lower nicotine means lower employment -- to the tune of almost a million jobs. As the comment period on proposed new rules for cigarettes came to an end Monday, the tobacco industry has weighed in. It’s predicting dire consequences if the Food and Drug Administration carries out a plan it’s considering that would lower nicotine in cigarettes by as much as 97 percent.
As of July 13, Altria Group (MO) was trading at $58.50. From the graph below, you can see that analysts have lowered their price target from $76.43 in April to the current target price of $68.24. The increase in anti-tobacco regulations, a declining number of smokers, and increased competition in RRPs (reduced risk products) appear to have compelled analysts to lower their price targets for Altria.
From the above graph, you can see that Altria’s forward PE multiple has declined since the beginning of 2018. As of July 13, Altria was trading at a forward PE multiple of 14.0x compared to 19.7x at the beginning of 2018. The increase in anti-tobacco regulations, a declining number of smokers, and increased competition in RRPs (reduced risk products) have led to a fall in Altria stock as well as its valuation multiple.
Wall Street analysts are expecting Altria Group (MO) to post EPS of $1.01 in the second quarter, which represents a rise of 18.8% from $0.85 in the second-quarter of 2017. EPS growth is expected to be driven by the expansion of net margins and share repurchases. Analysts are expecting Altria’s net margins to improve from 32.5% to 38.3% due to a decline in cost of sales and a lower effective tax rate.
Wall Street analysts are expecting Altria Group (MO) to post second-quarter revenue, net of excise tax, of $5.02 billion, which represents a fall of 0.9% from $5.07 billion in Q2 2017. To drive sales, Altria has restructured to form two divisions: core tobacco and innovative tobacco products. Altria has also reported that it will be employing a chief growth officer to accelerate the introduction of innovative products and technologies to market.
Altria Group (MO) is scheduled to report its second-quarter earnings before the market opens on July 26. As of July 13, the company was trading at $58.50, which represents a rise of 4.8% since the announcement of its first-quarter earnings on April 26. Altria stock was driven by strong first-quarter earnings when it outperformed analysts’ EPS expectation of $0.80 by posting $0.91. Altria has been struggling in 2018 due to the increase in anti-tobacco regulations and the declining number of smokers.
Smucker (SJM) announces a quarterly dividend hike of 9% from 78 cents per share to 85 cents. This marks the company's 17th straight year of dividend hike.
Could Philip Morris Meet Analysts’ Expectations in Q2 2018? The forward PE multiple is calculated by dividing the company’s stock price by analysts’ earnings estimates for the next four quarters. On July 11, Philip Morris International (PM) traded at a forward PE multiple of 15.2x compared to 18.7x before it announced its first-quarter earnings on April 19.
Could Philip Morris Meet Analysts’ Expectations in Q2 2018? This expansion is expected to be driven by revenue growth and a lower effective tax rate. Analysts expect Philip Morris’s EBIT margins to fall from 39.3% in the second quarter of 2017 to 38.8%.
Could Philip Morris Meet Analysts’ Expectations in Q2 2018? Wall Street analysts expect Philip Morris International (PM) to post second-quarter revenues, net of excise taxes, of $7.56 billion. This revenue growth is expected to be driven by an increase in product prices and growth in RRP (reduced-risk products) sales.
Altria Group, Inc. will host a live audio webcast on Thursday, July 26, 2018, at 9:00 a.m. Eastern Time to discuss its 2018 second-quarter business results. Altria will issue a press release containing its business results at approximately 7:00 a.m.
Richmond, Virginia headquartered Altria Group Inc.'s stock finished Tuesday's session 1.28% higher at $58.76. A total volume of 9.51 million shares was traded, which was above their three months average volume of 8.38 million shares.
This could indicate that investors who seek to profit from falling equity prices are not currently targeting MO. Over the last one-month, outflows of investor capital in ETFs holding MO totaled $2.42 billion.
Investors shunned the stocks of tobacco companies in the first half of 2018 following the decline in shipment volumes. A deceleration in sales of reduced-risk products further irked investors since these products are meant to accelerate the sales growth rate amid a decline in the smoking rate around the world. The stocks of Philip Morris International (PM) and Altria (MO) fell 23.6% and 20.5%, respectively, in the first six months of 2018 (see graph below) and underperformed the benchmark index (SPY), which increased 1.7% during the comparable period.
As of July 2, Altria Group (MO) was trading at $55.80, and analysts’ 12-month stock price target was $68.57, implying a 22.7% return. On June 26, Morgan Stanley cut its target price from $65 to $63, while Jefferies lowered its target price from $84 to $70 on June 1. Since Altria’s first-quarter earnings announcement, Deutsche Bank, Citigroup, and Berenberg have lowered their price targets for its stock. The dip of 4.2% in Altria’s cigarette shipment volumes and increasing restrictions on tobacco products appear to have prompted analysts to lower their price targets.
Could Altria’s Price Correction Mean a Buying Opportunity? Altria Group (MO) has a strong history of enhancing shareholders’ returns through higher dividends and share repurchases. On May 17, Altria announced dividends of $0.70 per share at an annualized payout of $2.80.
In the next four quarters, analysts expect Altria Group’s (MO) EPS to rise 11.6% YoY (year-over-year) to $4.03 from $3.61. This year, Altria expects its EPS to grow 15%–19% YoY to $3.90–$4.03 from $3.39.
Could Altria’s Price Correction Mean a Buying Opportunity? In the next four quarters, analysts expect Altria Group (MO) to post revenue, net of excise tax, of $19.74 billion, which represents 0.8% growth YoY (year-over-year) from $19.58 billion. To maximize its core tobacco business and realize the full potential of its innovative tobacco products, Altria has established two divisions: core tobacco and innovative tobacco products.
By the end of July 2, Altria Group (MO) was trading at $55.87, 21.8% lower than its price at the beginning of 2018. The company is currently trading 3.6% above its 52-week low of $53.91 and 25.5% below its 52-week high of $74.98. Investors fear these restrictions could lower Altria’s sales.
NEW YORK, June 25, 2018-- In new independent research reports released early this morning, Fundamental Markets released its latest key findings for all current investors, traders, and shareholders of Altria ...