Altria Group (NYSE:MO) Issues Earnings Results

Key Points

• Altria beat Q1 estimates with $1.32 EPS vs. $1.25 expected and $4.76B revenue, reaffirmed FY‑2026 guidance of $5.56–$5.72, while returning about $1.8B in dividends plus $280M in buybacks and reducing leverage to ~1.9x debt/EBITDA.
• The smokable business drove results — segment adjusted OCI rose ~6.3%, margins expanded and Marlboro gained share to 59.5%; however, the oral tobacco segment showed near‑term weakness with volumes and margins down, even as ON!/On+ e‑product shipments accelerated.
• Shares jumped ~6.4% on the news to about $72.57 and the company declared a quarterly dividend of $1.06 (annualized $4.24, ~5.8% yield), noting a payout ratio above 100%.

Altria Group (NYSE:MO - Get Free Report) released its quarterly earnings results on Thursday. The company reported $1.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.25 by $0.07, FiscalAI reports. Altria Group had a negative return on equity of 287.61% and a net margin of 29.84%.The business had revenue of $4.76 billion during the quarter, compared to the consensus estimate of $4.58 billion. During the same quarter in the previous year, the business earned $1.23 EPS. The company's quarterly revenue was up 5.3% on a year-over-year basis. Altria Group updated its FY 2026 guidance to 5.560-5.72 EPS.

Here are the key takeaways from Altria Group's conference call:

• Delivered a strong start to 2026 with adjusted diluted EPS up 7.3% in Q1, reaffirmed full‑year guidance of $5.56–$5.72, returned significant cash to shareholders (≈$1.8B dividends + $280M buybacks) and reduced debt with total debt/EBITDA at 1.9x.
• Smokable business drove profit growth — segment adjusted OCI rose 6.3%, margins expanded to 65.1%, net pricing was +6.3%, and cigarette declines moderated (reported -2.4%, adjusted shipments ≈-4%), while Marlboro strengthened premium share to 59.5%.
• ON!/On+ rollout progressing — total ON! shipments grew nearly 18% to >46M cans; On+ began national shipping in March, was in ~100,000 stores covering ~85% of pouch category volume, and is the first product authorized under the FDA Pilot program.
• Near‑term weakness in the oral tobacco segment — total reported shipments down 3.1%, estimated adjusted volumes down ~8.5%, retail share fell 5.5 percentage points and margins declined ~1.8 p.p., driven partly by Helix marketing spend and mix shift from MST to pouches.
• E‑vapor market appears to be moderating as illicit flavored disposable demand eases and enforcement increases; Altria estimates ~20.5M adult vapers and says faster, predictable FDA authorizations plus sustained enforcement are needed to restore a compliant e‑vapor marketplace.

Altria Group Trading Up 6.4%

Shares of NYSE:MO traded up $4.37 during mid-day trading on Thursday, reaching $72.57. The company had a trading volume of 24,763,814 shares, compared to its average volume of 7,789,090. The firm has a market cap of $121.28 billion, a price-to-earnings ratio of 17.66, a PEG ratio of 2.73 and a beta of 0.41. The company's 50-day moving average price is $66.70 and its 200-day moving average price is $62.68. Altria Group has a one year low of $54.70 and a one year high of $73.85.

Altria Group Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Wednesday, March 25th will be issued a $1.06 dividend. This represents a $4.24 dividend on an annualized basis and a dividend yield of 5.8%. The ex-dividend date of this dividend is Wednesday, March 25th. Altria Group's payout ratio is 103.16%.

Key Headlines Impacting Altria Group

Here are the key news stories impacting Altria Group this week:

• Positive Sentiment: Q1 results beat expectations — Altria reported $1.32 EPS (above consensus) and revenue that topped estimates, which investors are citing as the primary catalyst for the rally. Altria beats quarterly profit estimates (Reuters)
• Positive Sentiment: Pricing power and Marlboro momentum drove results — management said higher cigarette pricing and strong Marlboro performance offset volume declines, supporting margin and cash flow expectations. What's Going On With Altria Group Stock On Thursday? (Benzinga)
• Positive Sentiment: Income appeal reinforced — Altria was highlighted as a reliable dividend payer/dividend‑king candidate, which supports demand from yield‑focused investors. Want $1,307 in Passive Income? Invest $10,000 Into These 3 Dividend Kings (247WallSt)
• Positive Sentiment: Bullish analyses surfaced — retail/independent analysts published bullish theses highlighting valuation and cash‑flow strengths, which may attract additional buyers. Is Altria Group, Inc. (MO) A Good Stock To Buy Now? (Yahoo)
• Neutral Sentiment: FY‑2026 guidance reaffirmed — Altria set EPS guidance of 5.560–5.72, which management says is intact; the range is roughly in line with Street forecasts but leaves some dispersion for investors to debate. Altria Reports 2026 First-Quarter Results; Reaffirms Full-Year Guidance (Press Release/Slide Deck)
• Neutral Sentiment: Full earnings materials and call transcript available — investors can review the conference call and transcript for details on combustibles trends, JUUL/next‑gen strategy, and cost initiatives. Altria Group, Inc. (MO) Q1 2026 Earnings Call Transcript (Seeking Alpha)
• Negative Sentiment: Volume declines and competitive pressure remain a risk — management acknowledged declining cigarette volumes and tougher competition in nicotine products, which are structural challenges that could weigh on future topline if pricing cannot fully compensate. Altria beats quarterly profit estimates (Reuters)

Insider Activity at Altria Group

In related news, SVP Charles N. Whitaker sold 27,908 shares of Altria Group stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $67.57, for a total value of $1,885,743.56. Following the sale, the senior vice president owned 180,869 shares of the company's stock, valued at approximately $12,221,318.33. The trade was a 13.37% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 0.10% of the company's stock.

Institutional Investors Weigh In On Altria Group

A number of hedge funds have recently modified their holdings of the stock. Charles Schwab Investment Management Inc. raised its holdings in shares of Altria Group by 10.6% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 65,516,916 shares of the company's stock worth $3,777,931,000 after purchasing an additional 6,265,780 shares during the period. Morgan Stanley raised its holdings in shares of Altria Group by 1.5% in the 4th quarter. Morgan Stanley now owns 22,306,173 shares of the company's stock worth $1,286,174,000 after purchasing an additional 335,089 shares during the period. Northern Trust Corp raised its holdings in Altria Group by 0.4% during the 3rd quarter. Northern Trust Corp now owns 16,705,159 shares of the company's stock valued at $1,103,543,000 after acquiring an additional 59,189 shares during the period. Invesco Ltd. raised its holdings in Altria Group by 0.7% during the 4th quarter. Invesco Ltd. now owns 11,916,401 shares of the company's stock valued at $687,100,000 after acquiring an additional 80,585 shares during the period. Finally, First Trust Advisors LP raised its holdings in Altria Group by 15.7% during the 4th quarter. First Trust Advisors LP now owns 6,671,970 shares of the company's stock valued at $384,706,000 after acquiring an additional 904,811 shares during the period. Institutional investors own 57.41% of the company's stock.

Analysts Set New Price Targets

A number of analysts recently commented on the company. Bank of America lifted their price target on Altria Group from $72.00 to $73.00 and gave the stock a "buy" rating in a report on Friday, April 10th. Jefferies Financial Group boosted their price objective on Altria Group from $47.00 to $50.00 and gave the stock an "underperform" rating in a research report on Wednesday, March 4th. Stifel Nicolaus cut their price objective on Altria Group from $72.00 to $68.00 and set a "buy" rating on the stock in a research report on Friday, January 30th. Barclays boosted their price objective on Altria Group from $57.00 to $63.00 and gave the stock an "underweight" rating in a research report on Monday, February 23rd. Finally, The Goldman Sachs Group reissued a "buy" rating and issued a $77.00 price objective on shares of Altria Group in a research report on Thursday. Five equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $66.50.

About Altria Group

Altria Group, Inc NYSE: MO is a U.S.-based consumer goods company whose principal business is the manufacture and sale of tobacco products. Headquartered in Richmond, Virginia, the company's operations are focused primarily on the U.S. market and include the production, marketing and distribution of cigarettes, smokeless tobacco and cigars. Its flagship cigarette franchise in the United States is sold through its operating subsidiaries and is among the most recognizable cigarette brands in the country.

Altria's principal operating businesses include Philip Morris USA (cigarettes), U.S.

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