Altria Group, Inc. (NYSE:MO) Earnings Preview: A Look at the Upcoming Quarterly Report

• Altria Group, Inc. (NYSE:MO) is expected to report an EPS of $1.28 and revenue of $5.04 billion for the upcoming quarter.
• The company holds a Zacks Rank of #2 (Buy), indicating strong earnings estimates and potential market outperformance.
• Despite challenges, Altria's strategic pricing and brand strength in NJOY and on! are expected to drive Q4 earnings, with a projected $8.3 billion in attributable cash flow in 2025.

Altria Group, Inc. (NYSE:MO), a leading name in the Consumer Staples sector, is gearing up for its quarterly earnings release on January 30, 2025. Wall Street is setting its sights on an earnings per share (EPS) of $1.28 and revenue forecasts around $5.04 billion. These figures reflect Altria's dedication to leveraging its pricing power and enhancing operational efficiencies.

Competing within a sector ranked #14 in the Zacks Sector Rank, Altria outshines many of its peers. With a Zacks Rank of #2 (Buy), the company is recognized for its strong earnings estimates and revisions, hinting at a potential outperformance in the market in the near future. This is particularly noteworthy as it stands against competitors like Simply Good Foods (SMPL) within the sector.

The anticipation for Altria's Q4 earnings is high, with expectations set on the company's strategic pricing and the burgeoning strength of its NJOY and on! brands. Although there's been a slight dip in the Zacks Consensus Estimate for quarterly earnings to $1.27 per share, it still represents a 7.6% increase from the same quarter last year. Revenue estimates are pegged at $5.1 billion, marking a 0.5% increase from the previous year.

Altria's financial health is underlined by its market valuation metrics. The company boasts a P/E ratio of 8.71 and a price-to-sales ratio of 4.38, indicating favorable market valuation of its earnings and revenue. However, its negative debt-to-equity ratio of -7.25 and a current ratio of 0.44 raise concerns about its ability to meet short-term obligations.

Looking forward, Altria is on track to generate $8.3 billion in attributable cash flow in 2025, maintaining an attractive shareholder yield of about 10%. Nonetheless, the emerging threat posed by GLP-1 medications, which could diminish nicotine cravings, looms as a potential long-term challenge for the company.