Altria (MO) set to report This fall 2024 earnings outcomes, a couple of factors to notice

Shares of Altria Group, Inc. (NYSE: MO) have been down over 1% on Tuesday. The inventory has gained 5% over the previous three months. The tobacco big is slated to report its fourth quarter 2024 earnings outcomes on Thursday, January 30, earlier than market open. Right here’s a take a look at what to anticipate from the earnings report:

Income

Analysts are projecting income of $5.04 billion for Altria in This fall 2024, which compares to income of $5.02 billion reported in the identical quarter a 12 months in the past. Within the third quarter of 2024, revenues rose 1% year-over-year to $5.34 billion.

Earnings

The consensus goal for earnings per share in This fall 2024 is $1.28, which compares to adjusted EPS of $1.18 reported in This fall 2023. In Q3 2024, adjusted EPS elevated 8% YoY to $1.38.

Factors to notice

Altria is making good progress on its smoke-free transformation. Its smoke-free enterprise is benefiting from features in NJOY vaping gadgets and on! nicotine pouches. Within the third quarter of 2024, NJOY consumables cargo quantity elevated 15.6% YoY to 10.4 million items whereas its machine cargo quantity practically tripled to 1.1 million items. Nonetheless, within the e-vapor class, the rise in utilization of illicit disposable merchandise stays a problem.

Altria is anticipated to profit from development in its oral tobacco merchandise enterprise. In Q3, revenues on this phase grew over 5%, pushed by greater pricing and cargo volumes. Within the US, nicotine pouches make up practically 44% of the oral tobacco product class. On! nicotine pouches are demonstrating robust development. In Q3, on! cargo quantity grew by 46% to almost 42 million cans.

The corporate continues to face challenges in its smokeable merchandise enterprise as cigarette cargo volumes proceed to lower. In Q3, home cigarette cargo quantity fell practically 9%. The business is dealing with pressures from development in illicit e-vapor merchandise and continued discretionary revenue pressures on customers. These headwinds are more likely to have continued within the fourth quarter as effectively.