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Sep 30, 2021
Altria Q3 2021 Earnings Report
Altria balanced maximizing profitability from core tobacco businesses with investing in smoke-free transition and expanded share repurchase program.
Key Takeaways
Altria reported a decrease in net revenues but an increase in adjusted diluted EPS. The company expanded its share repurchase program and narrowed its full-year earnings guidance.
Altria continued to balance maximizing profitability from its core tobacco businesses with investing to realize its Vision of responsibly leading the transition of adult smokers to a smoke-free future.
Tobacco businesses performed well against difficult year-over-year comparisons and Altria is encouraged by the significant retail share growth from on! in the third quarter.
Altria continued to reward shareholders with a strong and growing dividend and announced the expansion of its existing $2.0 billion share repurchase program to $3.5 billion.
Altria is raising the lower-end of its full-year 2021 guidance and now expect to deliver adjusted diluted EPS in a range of $4.58 to $4.62.
Revenue by Segment
Forward Guidance
Altria narrows its guidance for 2021 full-year adjusted diluted EPS to be in a range of $4.58 to $4.62, representing a growth rate of 5% to 6% from an adjusted diluted EPS base of $4.36 in 2020.
Positive Outlook
- Planned investments in support of its Vision
- 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
- Full-year adjusted effective tax rate will be in a range of 24.5% to 25.5%
Challenges Ahead
- Conditions related to the economy (including unemployment rates and the impact of increased inflation)
- ATC dynamics, including stay-at-home practices, disposable income, purchasing patterns and adoption of smoke-free products
- Regulatory and legislative (including excise tax) developments
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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