Altria Group Inc. (MO)

Shares of Altria Group Inc. (MO) dropped by 2.84% from $42.57 to $41.36 in the trading on Wednesday, December 6, 2023. The reason why MO is down today is due to the significant write-down announced by British American Tobacco (BTI)

• Impact of British American Tobacco Write-Down: British American Tobacco (BAT) announced a substantial write-down in the value of its US cigarette brands, including Camel, Pall Mall, and others. The write-down amounts to approximately $31.5 billion and reflects BAT's acknowledgment that its traditional market, particularly in the United States, has no long-term future. This decision is indicative of the evolving challenges and shifting dynamics in the tobacco industry.
• Indirect Impact on Altria Group: Altria Group Inc. (MO) is closely related to the tobacco industry, and developments in major tobacco companies, such as BAT, can have a spillover effect. The significant write-down by BAT likely raised concerns among investors about the long-term prospects of the tobacco industry as a whole. This uncertainty and the acknowledgment of challenges in the traditional tobacco market may have contributed to the decline in Altria Group's stock price.

Shares of Altria Group (MO) dropped by 8.31% from $42.82 to $39.26 in the trading on Thursday, October 26, 2023. The reason why MO stock down is due to its lower-than-expected third-quarter earnings:

• Q3 earnings results: While the company reported flat adjusted earnings of $1.28 per share, it missed the Zacks Consensus Estimate of $1.29. Net revenues also dropped by 4.1% to $6,281 million, primarily because of reduced revenues in the smokeable product category. The decline in cigarette shipments, down 11.6%, and challenges in the oral tobacco product segment contributed to the negative performance.
• FY 2023 Guidance: Altria narrowed its adjusted EPS range for 2023 to $4.91-$4.98, reflecting a 1.5-3% growth from the previous year. The company continues to monitor economic factors such as inflation, interest rates, and supply-chain challenges.