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Mar 31, 2020
Altria Q1 2020 Earnings Report
Altria's core tobacco segments delivered strong OCI and cash flow, while earnings guidance was withdrawn due to uncertain COVID-19 impacts.
Key Takeaways
Altria Group, Inc. reported strong first-quarter results, driven by the strength of its smokeable and oral tobacco products segments, with adjusted diluted EPS growing by 18.5%. However, due to uncertainties related to the impact of the COVID-19 pandemic, the company withdrew its full-year 2020 adjusted diluted EPS guidance and 2020-2022 adjusted diluted EPS growth objective.
Altria withdrew its full-year 2020 adjusted diluted EPS guidance due to COVID-19 uncertainties.
The company's dividend remains a top priority, with an objective of an approximately 80% payout ratio of adjusted diluted EPS.
Net revenues increased by 13.0% to $6.4 billion, driven by higher net revenues in the smokeable and oral tobacco products segments.
Adjusted diluted EPS increased 18.5% to $1.09, primarily driven by higher adjusted OCI in the smokeable and oral tobacco products segments and fewer shares outstanding.
Altria
Altria
Altria Revenue by Segment
Revenue by Segment
Smokeable Products Revenue
CapyFin.comOral Tobacco Products Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Due to the uncertainties related to the impact of the COVID-19 pandemic and economic recovery scenarios, Altria withdraws its full-year 2020 adjusted diluted EPS guidance of $4.39 to $4.51 and, as a result, Altria also withdraws its 2020 to 2022 compounded annual adjusted diluted EPS growth objective of 4% to 7%.
Challenges Ahead
- Uncertain contributions from its equity investment in ABI
- Potential impacts of COVID-19 on the macro-economic environment
- Potential impacts of COVID-19 on adult tobacco consumers
- Withdrawal of its full-year 2020 adjusted diluted EPS guidance
- Withdrawal of its 2020 to 2022 compounded annual adjusted diluted EPS growth objective
Revenue & Expenses
Visualization of income flow from segment revenue to net income