Altria Group Inc.’s stock rose 3% on Thursday after the tobacco company said it’s assuming limited impact from enforcement efforts in the illicit e-vapor market in 2024.
It also set a new $1 billion share-buyback program.
The tobacco giant
MO,
said its fourth-quarter profit fell by 23% to $2.06 billion, or $1.16 a share, from $2.69 billion, or $1.50 a share, in the year-ago quarter.
Altria’s adjusted fourth-quarter profit of $1.18 a share matched the FactSet consensus estimate.
Revenue dipped by 1.2% to $5.02 billion, slightly shy of the analyst estimate of $5.06 billion.
Looking ahead, Altria expects 2024 full-year adjusted earnings of $5.00 a share to $5.15 a share, compared to the analyst estimate of $5.07 a share.
“Our guidance includes the impact of two additional shipping days in 2024 and assumes limited impact from enforcement efforts in the illicit e-vapor market on combustible and e-vapor volumes,” Altria said.
In October, Altria’s NJOY LLC operating company filed lawsuits against 34 foreign and U.S. makers, distributors and online retailers of illicit disposable-vape products sold in California and other states.
The suit alleges that the companies are violating California’s flavor-ban law, unlawful under federal law and subject to action from the Food and Drug Administration. The companies are illegally competing with companies that comply with state and federal laws, according to Altria.
The suit is seeking a nationwide injunction against the import and sale of the products along with “significant” compensatory and punitive damages.
In the fourth quarter, Altria said domestic cigarette shipment volume fell 7.6% due partly to the industry’s decline rate. Altria said it’s also been impacted by the growth of illicit e-vapor products and retail share losses.
Ahead of Thursday’s moves, Altria’s stock has fallen 14.6% in the past year, compared to a 12% gain by the Dow Jones Industrial Average
DJIA.
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