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Sep 30, 2022
Altria Q3 2022 Earnings Report
Altria's Q3 2022 business results were reported and its guidance for 2022 full-year adjusted diluted earnings per share (EPS) was narrowed.
Key Takeaways
Altria Group reported a decrease in net revenues by 3.5% to $6.55 billion for the third quarter of 2022. Adjusted diluted EPS increased by 4.9% to $1.28. The company narrowed its full-year 2022 adjusted diluted EPS guidance to a range of $4.81 to $4.89, representing a growth rate of 4.5% to 6% from a base of $4.61 in 2021.
Net revenues decreased 3.5% to $6.6 billion, primarily driven by the sale of our former Ste. Michelle wine business in October 2021 and lower net revenues in the smokeable products segment, partially offset by higher net revenues in the oral tobacco products segment.
Reported diluted EPS increased 100%+ to $0.12, primarily driven by lower reported losses from our investment in ABI (due primarily to a lower impairment of our investment in ABI), favorable Cronos-related special items, higher reported operating companies income (OCI) and fewer shares outstanding, partially offset by unfavorable changes in the estimated fair value of our investment in JUUL (including the corresponding adjustment for a tax valuation allowance).
Adjusted diluted EPS increased 4.9% to $1.28, primarily driven by higher adjusted OCI and fewer shares outstanding.
Marlboro retail share of the total cigarette category was 42.6%, a decrease of 0.4 share points and 0.1 share point sequentially, primarily due to increased macroeconomic pressures on ATC disposable income.
Revenue by Segment
Forward Guidance
Altria narrows its guidance for 2022 full-year adjusted diluted EPS to be in a range of $4.81 to $4.89, representing a growth rate of 4.5% to 6% from an adjusted diluted EPS base of $4.61 in 2021.
Positive Outlook
- Enhancement of our digital consumer engagement system
- Increased smoke-free product research, development and regulatory preparation expenses
- Marketplace activities in support of our smoke-free products
- Planned investments in support of our Vision
- The guidance range also includes anticipated inflationary increases in MSA expenses and direct and indirect materials costs
Challenges Ahead
- The external environment remains dynamic.
- Conditions related to the economy, including the impact of high inflation, rising interest rates and global supply chain disruptions
- ATC dynamics, including disposable income, purchasing patterns and adoption of smoke-free products
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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