Altria adjusts EPS guidance, launches new $1B buyback

Altria (MO -0.4%) has slightly tweaked its 2014 EPS guidance range to $2.54-$2.59 from $2.52-$2.59; consensus is at $2.57.

The company has also announced a new $1B buyback to be finished by the end of 2015. $132M was spent on buybacks in Q2, leaving $53M remaining on a prior $1B program.

Smokeable products revenue (exc. taxes) +0.8% Y/Y to $4B, with higher prices offsetting a 4.8% drop in shipment volume (cigarettes -5%, cigars +11.1%). Division op. income (OCI) +3.6% to $1.8B.

Smokeless products revenue (exc. taxes) +0.7% to $428M, op. income +5.6% to $285M. Shipment volume +1.6%. Wine revenue +6.8% to $141M.

Altria (current dividend yield of 4.5%) expects to continue paying out ~80% of adjusted EPS through dividends.

Q2 results, PR

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Comments (10)
  • thomasjmartin
    , contributor
    Comments (106) | Send Message
    I have approximately 50 positions. MO is more focused on shareholders than any sf the others!
    22 Jul 2014, 10:52 AM Reply Like
  • Capt Jack Daniels
    , contributor
    Comments (1466) | Send Message
    Mo is a joy to own especially if you are fortunate to be receiving 10% dividend returns based upon a much lower stock price.
    22 Jul 2014, 10:57 AM Reply Like
  • Dealerdeb1
    , contributor
    Comments (1625) | Send Message
    IF there is a pullback I am backing up the truck
    22 Jul 2014, 11:08 AM Reply Like
  • johnnyvegas1968
    , contributor
    Comments (21) | Send Message
    Oh Altria how I love you so. Like a good dependable woman you're always there for me. Our relationship has grown closer over the years, making us both richer inside, and out. I even know you'll be there for me when I'm old and gray, and I'll continue to draw upon your many blessings.


    While others have put their faith in lesser women, thinking that your vices made you ugly, I saw through the veil. Every commitment I made to you have brought me so much more in return. I know you will be there to support my children long after I'm gone. Oh Altria how I love you so!
    22 Jul 2014, 11:04 AM Reply Like
  • Dealerdeb1
    , contributor
    Comments (1625) | Send Message
    Very very funny! LOL
    22 Jul 2014, 11:08 AM Reply Like
  • thenoffya
    , contributor
    Comments (185) | Send Message
    But so true!
    22 Jul 2014, 11:37 AM Reply Like
  • magi48
    , contributor
    Comments (449) | Send Message
    What amazes me is how the dividends remain so strong. Since the 1950's the tobacco companies have been able to stay afloat, despite lawsuits.
    Some of society enjoys smoking. And that is why I am a share holder. People want to live their life on their terms.
    22 Jul 2014, 01:01 PM Reply Like
  • Dealerdeb1
    , contributor
    Comments (1625) | Send Message
    Better enjoy it while they can with the uber control freaks in our country lately someone else is deciding daily what you can and cannot do. If they don't like what you do or say they will make a law or have one of the strongarm agencies come after you
    23 Jul 2014, 08:59 AM Reply Like
  • crazty4tennis
    , contributor
    Comments (1278) | Send Message
    Long MO. The company pays a generous and consistent dividend. I see no reason to jump ship now.
    22 Jul 2014, 01:56 PM Reply Like
  • donlsales
    , contributor
    Comments (123) | Send Message
    The cig volumes are declining faster than they have in the past. I suspect this five percent rate of decline could be the new normal.


    The earnings growth rate might be lower in the future, which will mean lower returns.


    The dividend growth rate could slow down also.
    22 Jul 2014, 01:57 PM Reply Like
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