Will Pricing & RRPs Aid Altria's (MO) Q1 Earnings Growth?
Zacks Investment Research | Apr 17, 2019 09:54PM ET
Altria Group, Inc. (NYSE:MO) is slated to release first-quarter 2019 results on Apr 25, before the opening bell. The company’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average being 1.3%. In fact, the company’s bottom-line performance has been impressive for almost a year now. Let’s delve into how things are shaping up for the upcoming quarterly release.
Smokeless Products Much in Demand
Reduced risk tobacco products (RRPs) are gaining traction among consumers, owing to rising health consciousness. The recent completion of the company’s partnership with JUUL, a renowned e-cigarettes player, is expected to influence first-quarter results. Moreover, the well-performing MarkTen and Green Smoke e-vapor products are likely to have an impact.
Pricing & Savings Efforts
Product pricing is expected to have been a vital revenue driver for the quarter. Last December, the company announced a cost-reduction program with an aim to rake in annualized cost savings of nearly $575 million by 2019-end. The program is also aimed at bringing down workforce and third-party spending. These initiatives are likely to show on the impending results.
Altria Group, Inc. Price, Consensus and EPS Surprise
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