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Jun 30, 2021
Altria Q2 2021 Earnings Report
Altria delivered strong second-quarter results driven by tobacco businesses.
Key Takeaways
Altria reported outstanding results in the second quarter, driven by the strength of its tobacco businesses. The company has narrowed its full-year adjusted diluted EPS guidance to a range of $4.56 to $4.62, reflecting confidence in its tobacco businesses and investments in smoke-free products.
Net revenues increased by 8.9% to $6.936 billion.
Reported diluted EPS increased by 11.5% to $1.16.
Adjusted diluted EPS increased by 12.8% to $1.23.
Full-year adjusted diluted EPS guidance narrowed to $4.56 to $4.62.
Altria
Altria
Altria Revenue by Segment
Revenue by Segment
Smokeable Products Revenue
CapyFin.comOral Tobacco Products Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Altria narrows its guidance for 2021 full-year adjusted diluted EPS to be in a range of $4.56 to $4.62, representing a growth rate of 4.5% to 6% from an adjusted diluted EPS base of $4.36 in 2020. This range includes the estimated impact of the recently announced Ste. Michelle Transaction, which is expected to close in the second half of 2021.
Positive Outlook
- Marketplace investments to expand the availability and awareness of Altria’s smoke-free products.
- Costs associated with building an industry-leading consumer engagement platform that enhances data collection and insights in support of ATC transition to smoke-free products
- Increased smoke-free product research and development expense.
- Continued confidence in tobacco businesses.
- Expected impact of the agreement to sale Ste. Michelle Wine Estates business.
Challenges Ahead
- Conditions related to the economy (including unemployment rates and the impact of increased inflation).
- Fiscal stimulus.
- ATC dynamics, including stay-at-home practices, disposable income, purchasing patterns and adoption of smoke-free products.
- Regulatory and legislative (including excise tax) developments.
- The timing and extent of COVID-19 vaccine administration and the impact of COVID-19 variants.
Revenue & Expenses
Visualization of income flow from segment revenue to net income