Altria Group Inc (NYSE:MO) stock was smouldering higher after the maker of Marlboro cigarettes said it would be sparking up a new $1 billion share buyback plan.
The owner of Philip Morris USA, US Smokeless Tobacco, Helix Innovations and NJOY reported fourth quarter earnings per share of $1.18, up 2.3% and exactly in line with analyst estimates. Full-year EPS of $4.95 was in the middle of reduced guidance from the third quarter.
Revenue of $5.98 billion were down 2% year on year but higher than the consensus estimate of $5.1 billion.
Altira delivered nearly $7.8 billion in dividends and share repurchases to investors, including completing a $1 billion buyback in the past quarter.
The board has waved through a new $1 billion repurchase program that is expected to be completed over the course of 2024.
Among other guidance for the current year, Altria said it expects to make adjusted diluted EPS of $5-5.15 for the year, which compares to the Wall Street consensus of $5.08 for 2024.
CEO Billy Gifford called last year "pivotal" for the company as it made progress with its smoke-free product portfolio, though growth was "essentially" flat in the past year versus its aims to grow at least 35% from 2022 levels in the US.
In 2023, total smoke-free net revenue was $2.7 billion and revenue from new smoke-free innovations was $165 million, which includes
Horizon Innovations LLC (Horizon), for the U.S. marketing and commercialization of heated tobacco stick products and, through a separate agreement, we have the exclusive U.S. commercialization rights to the IQOS Tobacco Heating System® and Marlboro HeatSticks® through April 2024.