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What’s Expected for Altria’s Earnings

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Analysts’ expectations

For the next four quarters, analysts expect Altria Group (MO) to post EPS (earnings per share) of $3.51, which represents 11.1% growth from the $3.16 seen in the last four quarters.

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Earnings growth

Altria’s EPS growth is expected to be driven by revenue growth, net margin expansion, and share repurchases. For the next four quarters, analysts expect Altria to have net margins of 33.6%, compared with 31.2% in the last four quarters. Lower SG&A (selling, general, and administrative), D&A (depreciation and amortization), and interest expenses are expected to drive Altria’s EPS in the next four quarters. SG&A expenses are expected to fall to 10.7% of total revenue from 12.2% in the last four quarters, and D&A expenses are expected to fall from 1.1% to 1.0% of total revenue.

Between the beginning of 4Q16 and the end of 3Q17, the company repurchased ~41.3 million shares for ~$3.0 billion. By the end of 3Q17, the company had ~$576.0 million under its share repurchase program.

Peer comparison

In the next four quarters, analysts expect Philip Morris International (PM) to post EPS of $5.17, which represents 15.1% growth from the $4.49 seen in the last four quarters. Next, we’ll look at analysts’ recommendations for Altria.

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