Altria Group (NYSE:MO) Trading Down 9.3% Following Weak Earnings

Key Points

• Altria shares fell 9.3% after quarterly adjusted EPS came in at $1.48, below the $1.50 analyst consensus, despite revenue of $5.36 billion topping estimates and rising 1.2% year over year.
• Management reaffirmed fiscal 2026 adjusted EPS guidance of $5.61–$5.72, but the midpoint is slightly below the $5.68 consensus. Weaker nicotine-pouch sales and softer oral-tobacco performance pressured results.
• Altria continues to appeal to income-focused investors through its $1.06 quarterly dividend, equivalent to a 6.2% yield, though its high 88.7% payout ratio and ongoing regulatory uncertainty remain considerations.

Altria Group, Inc. (NYSE:MO - Get Free Report) was down 9.3% during trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $67.92 and last traded at $67.95. Approximately 11,000,239 shares were traded during mid-day trading, an increase of 19% from the average session volume of 9,233,658 shares. The stock had previously closed at $74.92.

The company reported $1.48 EPS for the quarter, missing analysts' consensus estimates of $1.50 by ($0.02). Altria Group had a negative return on equity of 298.69% and a net margin of 34.34%.The firm had revenue of $5.36 billion for the quarter, compared to the consensus estimate of $5.35 billion. During the same quarter in the previous year, the business posted $1.44 EPS. Altria Group's revenue was up 1.2% on a year-over-year basis. Altria Group has set its FY 2026 guidance at 5.610-5.720 EPS.

Altria Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Stockholders of record on Monday, June 15th were given a dividend of $1.06 per share. This represents a $4.24 annualized dividend and a dividend yield of 6.2%. The ex-dividend date was Monday, June 15th. Altria Group's dividend payout ratio (DPR) is presently 88.70%.

Key Altria Group News

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

• Positive Sentiment: Altria reported quarterly revenue of $5.36 billion, slightly above the $5.35 billion analyst estimate, with sales up 1.2% year over year. Adjusted earnings increased to $1.48 per share from $1.44 a year earlier. Altria Group earnings report
• Positive Sentiment: Altria’s long record of dividend increases, share repurchases and debt reduction continues to support its appeal as a defensive, income-focused stock. Its transition toward smoke-free products also provides a potential long-term growth avenue. Investors reacting to Altria dividend strength
• Neutral Sentiment: Management reiterated fiscal 2026 adjusted EPS guidance of $5.61 to $5.72. The midpoint is slightly below the $5.68 consensus estimate, although the range still encompasses analysts’ expectations. Altria Q2 earnings and revenues
• Negative Sentiment: Adjusted earnings of $1.48 per share missed the $1.50 consensus estimate. The shortfall likely contributed to the negative market reaction despite the revenue beat and year-over-year EPS growth. Altria Q2 key metrics
• Negative Sentiment: Lower sales of nicotine pouches and softer oral-tobacco performance offset growth in cigarettes, resulting in virtually flat revenue and weaker underlying profit trends. Investors also continue to weigh regulatory uncertainty surrounding a potential FDA nicotine proposal. Altria profit falls on softer oral-tobacco performance

Wall Street Analyst Weigh In

Several brokerages recently weighed in on MO. Citigroup upped their target price on shares of Altria Group from $65.00 to $70.00 and gave the stock a "neutral" rating in a report on Friday, May 1st. Bank of America boosted their price objective on Altria Group from $72.00 to $73.00 and gave the company a "buy" rating in a research report on Friday, April 10th. Deutsche Bank Aktiengesellschaft upped their price objective on Altria Group from $60.00 to $66.00 and gave the stock a "hold" rating in a research note on Monday, May 4th. UBS Group increased their target price on Altria Group from $76.00 to $79.00 and gave the stock a "buy" rating in a research report on Tuesday, July 7th. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of Altria Group in a research note on Tuesday, July 14th. Five analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, Altria Group has an average rating of "Hold" and an average price target of $70.78.

Insiders Place Their Bets

In other news, Director Ellen R. Strahlman sold 2,000 shares of the firm's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $72.56, for a total transaction of $145,120.00. Following the completion of the transaction, the director owned 25,102 shares in the company, valued at $1,821,401.12. This trade represents a 7.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Ennis Debra J. Kelly sold 5,790 shares of Altria Group stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $72.25, for a total value of $418,327.50. Following the completion of the sale, the director directly owned 73,809 shares in the company, valued at $5,332,700.25. This trade represents a 7.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.10% of the company's stock.

Hedge Funds Weigh In On Altria Group

Institutional investors have recently added to or reduced their stakes in the company. Illinois Municipal Retirement Fund boosted its stake in shares of Altria Group by 7.1% during the 4th quarter. Illinois Municipal Retirement Fund now owns 668,243 shares of the company's stock worth $38,531,000 after purchasing an additional 44,267 shares during the period. Rayburn West Financial Services LLC bought a new stake in Altria Group in the fourth quarter worth about $2,438,000. North Dakota State Investment Board purchased a new position in shares of Altria Group during the fourth quarter valued at approximately $3,336,000. Procyon Advisors LLC grew its stake in shares of Altria Group by 59.3% during the first quarter. Procyon Advisors LLC now owns 38,926 shares of the company's stock valued at $2,569,000 after buying an additional 14,490 shares during the last quarter. Finally, International Assets Investment Management LLC raised its holdings in shares of Altria Group by 206.7% in the fourth quarter. International Assets Investment Management LLC now owns 75,573 shares of the company's stock worth $4,358,000 after buying an additional 50,931 shares during the period. Hedge funds and other institutional investors own 57.41% of the company's stock.

Altria Group Trading Down 9.3%

The stock has a 50 day moving average of $71.95 and a 200-day moving average of $68.23. The stock has a market capitalization of $113.43 billion, a P/E ratio of 14.22, a price-to-earnings-growth ratio of 2.70 and a beta of 0.45.

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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