2024-04-29 16:00:00 ET
Summary
- Altria's recent earnings showed a decline in EPS and revenue, but the smokeless tobacco segment and NJOY acquisition showed strong growth during the quarter.
- The company's accelerated buyback program and debt management strategies are important for their maintaining dividend safety and reducing debt in the future.
- Altria's net debt-to-EBITDA remained flat, and the company retired $1.1 billion worth of notes during the quarter. Their ratio remains lower than peer British American Tobacco's 2.6x.
- NJOY will be a strong growth driver going forward, with management expecting to submit PTMA filings for age gated Bluetooth technology by the end of Q2.
- The secular decline in smokeable products across the tobacco industry continues to be a headwind and risk, coupled with political issues.
Introduction
Investors in Altria ( MO ) likely invest in the company for one main reason, and that's because it pays a large portion of its cash flow in the form of dividends. I mean, that's precisely the reason I accumulated shares in the stock and since doing so, it has become one of my largest holdings....
Read the full article on Seeking Alpha
For further details see:
Altria Q1: Buybacks & Smokeless Products Continue To Be Growth Drivers