(MENAFN- Baystreet.ca) Altria (NYSE:MO) said its first-quarter earnings declined as revenue fell short of estimates as cigarette shipments continue to decline.
The parent of Marlboro cigarettes has been shifting its business away from traditional tobacco products, and announced it acquired the remaining 20% stake in On, a nicotine pouch product.
Net income decreased to $1.42 billion, or 77 cents per share, from $1.55 billion, or 83 cents per share, a year earlier.
Excluding items, Altria earned $1.07 per share, topping the $1.05 per share expected by analysts.
Revenue fell 5.1% to $6.04 billion from $6.36 billion a year ago. However, after excluding excise taxes, its revenue was $4.88 billion, which was shy of the $4.98 billion, analysts expected.
Total cigarette shipments fell 12% year over year, as smoking rates decline.
Altria once again lowered the value of its Juul vaping brand, writing its value down by another $200 million. The company said the fair value of its stake, which it acquired for $12.8 billion in December 2018, was worth $1.5 billion at the end of March.
The Food and Drug Administration, which regulates tobacco products in the U.S., may be approaching a ban on menthol cigarettes as early as this week after years of deliberation.
Menthol cigarettes have often been disproportionately used by people of color. The vast majority of Black smokers use menthol cigarettes, and Black men have the highest rates of lung cancer deaths in the U.S.
MO shares descended 89 cents, or 1.9%, to $46.29
MENAFN29042021000212011056ID1102001809
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.