Altria Group (MO) Tops Q4 EPS by 11c, Beat on Revenues; Offers FY18 EPS Above Consensus, Authorizes New $1B Share Buyback
Altria Group (NYSE: MO) reported Q4 EPS of $0.91, $0.11 better than the analyst estimate of $0.80. Revenue for the quarter came in at $5.28 billion versus the consensus estimate of $4.8 billion.
- Altria’s 2017 fourth-quarter reported diluted earnings per share (EPS) decreased 50.7% to $2.60, as comparisons were affected by special items.
- Altria’s 2017 fourth-quarter adjusted diluted EPS, which excludes the impact of special items, increased 33.8% to $0.91.
- Altria’s 2017 full-year reported diluted EPS decreased 27.1% to $5.31, as comparisons were affected by special items.
- Altria’s 2017 full-year adjusted diluted EPS, which excludes the impact of special items, increased 11.9% to $3.39.
- Altria announces a new $1 billion share repurchase program to be completed by the end of 2018, having completed its prior $4 billion share repurchase program in January.
- Altria’s Chairman and Chief Executive Officer Marty Barrington announces his decision to retire at the conclusion of the May 17, 2018 Annual Shareholder Meeting; Altria’s Board of Directors (Board) has elected Howard Willard, 54, to serve as Chairman and Chief Executive Officer and Billy Gifford, 47, to serve as Vice Chairman and Chief Financial Officer.
Altria Group sees FY2018 EPS of $3.90-$4.03, versus the consensus of $3.88.
2018 Full-Year Guidance
Altria forecasts 2018 full-year adjusted diluted EPS to be in a range of $3.90 to $4.03, which excludes a $0.09 tax expense for a tax basis adjustment related to the Deemed Repatriation Tax. This range represents a growth rate of 15% to 19% from a 2017 adjusted diluted EPS base of $3.39, which excludes the special items shown in Table 2. Altria’s 2018 guidance reflects investments in focus areas for long-term growth, including innovative product development and launches, regulatory science, brand equity, retail fixtures and future retail concepts.
Altria expects its 2018 full-year adjusted effective tax rate will be in a range of approximately 23% to 24%.
Altria expects capital expenditures in a range of $200 million to $250 million and depreciation and amortization expenses of approximately $210 million.
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