Altria shares (NYSE:MO) gained slightly at the time of writing after the tobacco company reported a 2.5% decrease in revenue to $5.58 billion in its most recent quarter. This was primarily due to a downturn in the smokeable products segment, although this was somewhat offset by gains in oral tobacco products and other categories. Adjusted earnings per share also dipped by 2.5% to $1.15, which was in line with analyst forecasts.
According to the CEO, the company is making progress with its NJOY products and remains on target to meet its annual goals despite regulatory challenges. In addition, Altria will continue to make strategic investments in smoke-free products.
Looking forward, Altria reaffirmed its earnings guidance for 2024 and expects an adjusted EPS between $5.05 and $5.17, which suggests a growth of 2% to 4.5% over the previous year and a midpoint that is slightly above the consensus estimate of $5.11. Furthermore, after performing an accelerated share repurchase program, the firm plans to complete the remaining $1 billion of its $3.4 billion share buyback plan by the end of 2024.
Is MO a Good Stock to Buy?
Turning to Wall Street, analysts have a Hold consensus rating on MO stock based on three Buys, three Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 9% year-to-date rally, the average MO price target of $43.33 per share implies that shares are fairly valued at current levels.
Altria also pays out a quarterly dividend, which yields 9.52%. This is greater than its sector average of 2.125%.
Is MO the Right Stock to Buy for Passive Income?
Before you hurry to invest in MO, think about the following:
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