Altria Narrows 2025 Full-Year Adjusted Diluted EPS Guidance

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By Brian Nelson, CFA

On July 30, Altria (MO) posted better than expected second quarter results that beat the consensus forecast on both the top and bottom lines. Net revenues dropped 1.7% on a year-over-year basis due to lower net revenues in its smokeable products segment, but the company’s adjusted diluted earnings per share advanced 8.3% year-over-year, to $1.44, primarily driven by higher operating income and fewer shares outstanding. Altria repurchased 4.7 million shares in the quarter, and as of June 30, had $400 million remaining under its current share repurchase program. The company paid dividends of $1.7 billion in the second quarter.

Management had the following to say about the results:

In the second quarter, we continued the pursuit of our Vision while maintaining our strong and profitable core businesses. In oral tobacco, on! delivered strong performance and was the substantial driver of the segment’s growth in the quarter. And we returned significant value to our loyal shareholders during the first-half of the year, with more than $4 billion delivered through dividends and share repurchases.”

We are raising the lower-end of our 2025 full-year guidance and now expect to deliver adjusted diluted EPS in a range of $5.35 to $5.45. This range represents a growth rate of 3.0% to 5.0% from a base of $5.19 in 2024.

Altria’s narrowed guidance for full-year 2025 adjusted diluted earnings per share in the range of $5.35-$5.45 (was $5.30-$5.45) is achievable, in our view. The updated guidance represents a growth rate of 3%-5% from a base of $5.19 in 2024. Altria also noted that its guidance “contemplates the current estimated impact of increased tariffs on its costs, based on presently available information about tariffs.” The tobacco giant expects EPS growth to moderate in coming periods as it laps a lower share count associated with its accelerated share repurchase program. We continue to like Altria as a holding in the High Yield Dividend Newsletter portfolio. Shares yield 6.9% at the time of this writing.

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