Altria misses Q2 profit estimates, narrows annual earnings forecast
MO•Outlook
- Altria narrows 2026 full-year adj diluted EPS guidance to $5.61-$5.72
- Company expects 2026 capital expenditures of $375 mln to $450 mln, up from prior $300 mln-$375 mln
- Altria outlook reflects moderated e-vapor industry growth and increased macroeconomic uncertainty
Overview
- U.S. tobacco products maker's Q2 revenue was flat yr/yr, adjusted EPS missed analyst expectations
- Company narrowed full-year adjusted EPS guidance and raised lower end of range
- Altria repurchased $55 mln shares in Q2, continued investments in smoke-free portfolio
Analyst coverage
- The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 8 "hold" and 3 "sell" or "strong sell"
- The average consensus recommendation for the tobacco peer group is "buy"
- Wall Street's median 12-month price target for Altria Group Inc is $70.00, about 6.6% below its July 29 closing price of $74.92
- The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago
Result drivers and key details
- - Higher pricing and tax refunds supported smokeable products revenue and profit, offsetting lower volumes and increased promotional spending
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