Altria Group reported third quarter results on Thursday that fell short of analysts’ expectations. Philip Morris USA (PM), the maker of the popular brand Marlboro saw a fall in its revenue as the demand for its core cigarette business decreased. Altria, the parent company of Philip Morris USA, saw an overall decrease in both revenue and earnings per share. The company cited illicit e-vapor products as one of the reasons for its financial decline.
Altria Group reported a revenue of $5.28 billion adjusted while Wall Street analysts had estimated a revenue of $5.43 billion according to LSEG, formerly called Refinitiv. The surveyed analysts had expected the company to report $1.29 earnings per share (EPS) adjusted but the third quarter results reported that the earnings per share was $1.28.
With an overall revenue of $6.28 billion, Altria saw a decline of 4.1 percent year over year. Net excise tax revenue recorded by the company was $5.28 billion, which was lower by 2.5 percent. Altria said that lower net revenues of its smokeable products contributed to its drop in revenue.
After its third quarter, the company has corrected its guidance for full-year adjusted EPS for 2023 and expects it to range between $4.91 to $4.98, or a growth rate of 1.5 percent to 3 percent from adjusted EPS of $4.84 in the earlier year.
Altria also reported that its domestic cigarette shipping volume fell by 11.6 percent. The fall was due to declines across the industry as well as due to competition from illicit e-vapor products.
The Marlboro Man was once a symbol of the American cowboy and the ad had caught the fancy of the nation. The largest tobacco company reaped in the profits from this cash crop and its popular byproduct cigarettes despite it being linked to fatal lung diseases and others. Now it looks as if similar products in different wrapping-e-vapor ones are taking over the mantle of tobacco ones.
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