Photo: Altria (cropped/resized)
Altria added $1 billion to its share-buyback authorization and raised its full-year earnings outlook Thursday, as higher tobacco prices helped offset another decline in cigarette shipments.
The Marlboro maker reported third-quarter revenue of $6.13 billion, up 1% from a year earlier. Revenue net of excise taxes rose 3.6% to $5.44 billion.
Reported earnings per share increased 7.1% to $1.51. Adjusted earnings, which exclude special items, rose 4.8% to $1.52 a share.
Buyback expansion and higher outlook
Altria’s board approved the additional $1 billion of repurchase capacity Wednesday. The existing program now expires on December 31, 2027.
The company bought back $400 million of stock during the third quarter, bringing repurchases through the first nine months to $735 million. It also paid $1.7 billion in quarterly dividends and $5.3 billion through September.
Altria now expects full-year adjusted earnings of $5.66 to $5.74 a share, representing growth of 4.5% to 6% from its 2025 base of $5.42.
That forecast excludes certain special items. Altria did not provide a matching GAAP earnings forecast, saying the effects of some excluded items could not be reliably estimated.
Prices rise as cigarette volumes fall
Domestic cigarette shipments in Altria’s smokeable-products segment fell 2.9% in the quarter. Adjusted for trade inventory changes, the estimated decline was 4%.
The company said higher pricing helped support its smokeable-products results. The pattern shows how revenue can rise even as fewer cigarettes are shipped.
Oral-tobacco shipments fell 4.3%, with Altria citing retail share losses and other factors. Adjusted for inventory movements, the estimated decline was 5%.
For the first nine months, Altria’s net revenue rose 1.4% to $17.67 billion, while adjusted earnings per share increased 5.1% to $4.33.
JBizNews Desk | Richmond
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