Altria Beats Quarterly Estimates on Higher Prices
Altria beat quarterly estimates as price hikes offset lower cigarette volumes. The firm maintained its annual outlook despite market share losses in key brands.
ALTRIA GROUP INC reported first-quarter revenue of $5.43B, beating the $4.58B average estimate compiled by LSEG. Adjusted profit reached $1.32 per share, exceeding the $1.25 expected by analysts. The results highlight Altria's reliance on price hikes to offset declining shipment volumes and shrinking market share in its core brands.
### Pricing Power Offsets Volume Declines Tobacco segment revenue rose 2.9% from a year ago despite a 7.8% drop in cigarette shipment volumes. Altria used price increases to preserve margins as Marlboro's retail share fell 1.4 share points to 39.7%. Shares rose 1% in morning trading following the release of the results.
