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Dec 31, 2022
Altria Q4 2022 Earnings Report
Altria's Q4 2022 results were reported, featuring an EPS increase and strategic investments in smoke-free products.
Key Takeaways
Altria reported a net revenue of $6.111 billion for Q4 2022, a decrease of 2.3% compared to Q4 2021. However, the adjusted diluted EPS increased by 8.3% to $1.18. The company also announced a new $1 billion share repurchase program and provided full-year earnings guidance for 2023.
Net revenues decreased by 2.3% to $6.1 billion, primarily driven by lower net revenues in the smokeable products segment.
Reported diluted EPS increased 70.5% to $1.50, primarily driven by favorable income tax items, 2021 Cronos-related special items, higher reported operating companies income (OCI), 2021 ABI-related special items, fewer shares outstanding and favorable interest expense, partially offset by 2022 changes in the estimated fair value of our investment in JUUL.
Adjusted diluted EPS increased 8.3% to $1.18, primarily driven by higher adjusted OCI, fewer shares outstanding and favorable interest expense.
A new $1 billion share repurchase program was authorized, expected to be completed by December 31, 2023.
Revenue by Segment
Forward Guidance
Altria expects to deliver 2023 full-year adjusted diluted EPS in a range of $4.98 to $5.13, representing a growth rate of 3% to 6% from a base of $4.84 in 2022.
Positive Outlook
- Continued smoke-free product research, development and regulatory preparation expenses
- Enhancement of our digital consumer engagement system
- Marketplace activities in support of our smoke-free products
- Expect our 2023 full-year adjusted effective tax rate will be in a range of 24.5% to 25.5%
- We also expect our 2023 capital expenditures to be between $175 million and $225 million and 2023 depreciation and amortization expenses of approximately $230 million.
Challenges Ahead
- 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
- Regulatory and legislative 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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