Altria Backs FY10 Outlook
- altria group
Wine and tobacco products company Altria Group Inc. (MO: News ), Thursday reaffirmed its full-year earnings guidance and said it expects the first half of the year to be challenging, as compared to the latter half.The Richmond, Virginia-based company said it expects earnings of $1.78 – $1.82 per share for the full year, which includes estimated charges of $0.07 per share related to exit, integration and implementation costs, UST acquisition-related costs, and SABMiller plc special items.
Excluding special items, the company anticipates adjusted earnings per share f $1.85 to $1.89, Altria stated.
Wall Street analysts currently expect earnings of $1.87 per share on revenues of $16.97 billion for the full year.
The company said that due to Philip Morris USA’s federal excise tax related pricing strategies last year, and different trade inventory dynamics for tobacco products in 2009 versus 2010, Altria expects the first half of 2010 to be more challenging, compared with the second half.
However, Altria added that it expects adjusted earnings per share to build up in the latter half of 2010.
Last month, the company reported first-quarter results where its net earnings increased to $813 million or $0.39 per share from $589 million or $0.28 per share in the previous year.
Adjusted for special items totaling $53 million or $0.03 per share, earnings for the first quarter were $866 million or $0.42 per share. In the prior-year quarter, adjusted earnings were $811 million or $0.39 per share.
Net revenues for the first quarter grew 27.3% to $5.76 billion from $4.52 billion in the same quarter a year ago, mainly due to higher pricing related to last year’s federal excise tax increase on tobacco products. Revenues net of excise taxes increased 3.6% to $4.0 billion.
Altria also declared a regular quarterly dividend of $0.35 per common share, payable on July 9, 2010, to shareholders of record as of June 15, 2010. The ex-dividend date is June 11, 2010.
Additionally, the company held its 2010 annual meeting of shareholders, whereby 10 nominees were elected to a one-year term each for director named in Altria’s proxy statement.
MO was last trading at $20.85, down $0.46 or 2.16%, on the NYSE.