The cigarette company also resumed  issuing its full-year guidance. The company’s earnings for the quarter came in at $1.29 an adjusted share, beating analysts’ forecast of $1.10 a share .The figure in the year-ago quarter was $1.46 a share. Revenue of $6.65 billion came in above the $6.5 billion expected by analysts. Cigarette and heated tobacco unit shipment volume fell -14.5%, on a -17.6% decrease in cigarette shipment volumes.

Philip Morris International announced a dividend hike to an annualized $4.68 a share. The tobacco company’s new quarterly dividend of $1.17 per share, up +2.6% from $1.14, would be payable payable Oct. 11 to holders of record Sept. 25. Based on Tuesday's Philip Morris stock closing price of $74.50, the new annual dividend rate of $4.68 a share indicates a dividend yield of 6.28%, which is significantly higher than the yield for the SPDR Consumer Discretionary Select Sector ETF  of 1.23% and also greater than the implied yield for the S&P 500  of 1.97% (according to FactSet). In August, Philip Morris confirmed that it was in talks with Altria regarding a potential merger.In 2008, Altria spun off Philip Morris and focused on the domestic cigarette market, while  Philip Morris went on to have a larger overseas presence. Philip Morris, along with several of its peers, has ventured into the e-cigarette market, amidst declining global sales of tobacco products. &

On Tuesday, Altria Group reported second-quarter adjusted earnings that was almost in line with analysts' expectations.Its prior forecast of the decline was -3.5% to -5%. Altria also revised its expectations of total domestic cigarette industry volumes decline to -4% to -6% through 2023, compared to the previously forecast range of -4% to -5%.

Analyst Judy Hong cited a “10-year trough despite a more accommodating market backdrop," for the tobacco industry stocks as a reason  behind the rating upgrade.Hong indicated that strong fundamentals, promising next generation tobacco products and expectations of easing of regulatory concerns over time should help to boost tobacco stocks. Hong's 12-month price target on Altria shares is $59, which reflects a total potential return of 27% including the 6% dividend yield.    

Tobacco stocks slid Tuesday after new Nielsen data showed cigarette sales declined sharply in the past month.

Smokers will receive discounts if they reduce, quit or switch to less carcinogenic products. According to the terms of the insurance, smokers who switch to e-cigarettes will receive 2.5% discount on premiums, people who switch to Philip Morris’ heated tobacco product iQOS for three months will receive a 25% discount, and people who quit smoking for at least a year will receive a 50% discount.The same premium would buy a £60,000 ($77,650) policy for a 40-year-old non-smoker. It is up to PM to decide how much discount to offer to people using alternative products that are less life threatening.

The earnings were also lower compared to the year-ago quarter’s 95 cents a share. Revenue of $4.39 billion was lower than analysts’ expectations of $4.59 billion for the quarter. Howard Willard, Altria's chairman and CEO indicated that the company had incurred higher interest expense from its recently issued debt, and that it did not realize – through most part of the quarter - the full benefit of savings from its cost reduction program.He blamed these forces for the decline in Altria’s first quarter adjusted diluted EPS. The company reaffirmed its forecast of 4% to 7% growth in adjusted per-share earnings  for the full-year 2019. 

Senate Majority Leader Mitch McConnell will introduce legislation to raise the federal minimum age to buy tobacco to 21 from 18, he announced Thursday. Read More...

Tobacco stocks dipped Wednesday after the Food and Drug Administration said it was investigating nearly three dozen cases of people who had seizures after vaping. Read More...

Altria Group Inc plunged Tuesday after Food and Drug Administration Commissioner Scott Gottlieb said he's concerned about the slow pace of efforts to curb youth smoking.One market bull bought on the news. Read more...

health regulators are now forging ahead with a plan designed to keep e-cigarettes out of the hands of teenagers by restricting sales of most flavoured products in convenience stores, gas stations, pharmacies and other retail locations. The new guidelines, first proposed by the Food and Drug Administration in November, are the latest government effort to reverse what health officials call an epidemic of underage vaping. Under proposed FDA guidelines released Wednesday, e-cigarette makers would need to restrict sales of most flavoured products to stores that verify the age of customers upon entry or include a separate, age-restricted area for vaping products.Companies would also be expected to use third-party, identity-verification technology for online sales. "The onus is now on the companies and the vaping industry to work with us to try and bring down these levels of youth use, which are simply intolerable," FDA Commissioner Scott Gottlieb said in an interview.

Philip Morris International beat earnings and revenue expectations for the fourth quarter, leading to its shares jumping +1.9% early Thursday. The tobacco & cigarette company reported fourth-quarter earnings of $1.25 per share, which exceeded analysts’ expected $1.17 per share.Its cigarette and heated-tobacco-unit shipment fell -4.6% year over year. Revenues still increased from the year-ago period. The company’s projected earnings for 2019 is $5.37 a share – which represents around +5.7% growth.

Cigarette and e-cigarette manufacturer British American Tobacco (NYSE: BTI) dropped by over 50% during 2018 before rallying slightly in the past month.However, if Tickeron’s AI Prediction tool is accurate, the stock could be getting ready for another leg down. The prediction model generated a bearish signal three days ago with an 84% confidence level.

Traditional cigarettes are likely to suffer a backlash in the long run, as substitutes like e-cigarettes are gaining momentum at a steady pace in the smoking market, particularly among the younger demographic. This has made the leading tobacco brand, Marlboro maker Altria Group Inc., invest in e-cigarette company Juul Labs and cannabis company Cronos Group Inc. Morgan Stanely (MS) analysts have recently predicted a decline in the sale of traditional cigarettes as demographic modeling reveals cigarette smoking volume is expected to witness deceleration of around 6% a year over the next decade, with young people not taking it up.The stock might also hit low single-digits. Merging with Juul in the production of e-cigarettes does not eliminate risks for the Marlboro maker.

tobacco company Altria has bought a 35% stake in e-cigarette startup Juul for $12.8 billion. With declining trend in cigarette smoking among Americans, Altria’s investment in Juul could potentially help the former diversify into the alternative smoking market.Juul, on the other hand, could leverage a big name like Altria to get top-shelf space at stores. Interestingly, Juul promotes its products as smoke-free sources of nicotine for people wanting to quit smoking.

Altria will buy a 45% stake in the company at  $1.8 billion, and would have the option to raise its stake to 55%.Even before Friday’s announcement from Altria, there were reports of Altria possibly eyeing Cronos. "Investing in Cronos Group as our exclusive partner in the emerging global cannabis category represents an exciting new growth opportunity for Altria," said Howard Willard, Altria's CEO, in a statement. Cigarette smoking is reportedly thinning out probably due to increased health-consciousness among consumers – something that might be an additional reason behind Altria's decision to diversify into the recreational marijuana space. Altria also announced plans to stop producing its MarkTen and Green Smoke e-cigarettes and its Verve oral nicotine, citing regulatory concerns and financial performance of the brands.

However, no decision has been reached yet on any transaction, according to Cronos. The announcement comes shortly after some reports in the media cited anonymous sources in suggesting that Altria might want to acquire Cronos. With Canada’s legalization of recreational use of marijuana, the Canadian cannabis industry is seeming to emerge as a lucrative opportunity for companies/investors.U.S. beverage company Constellation Brands Inc., for example, announced a $3.8 billion investment in Canada’s cannabis company Canopy Growth Corp. in August. With a declining trend in cigarette smoking among U.S. consumers, Altria might be looking at options to diversify its business, and the cannabis space could potentially be one of the options.

One of the world's largest producers and marketers of tobacco, cigarettes and related products, Altria Group has initiated talks with Canadian cannabis producer Cronos for a likely takeover, as it seeks to diversify its business beyond traditional tobacco smokers. According to Marijuana Business Daily, the total demand for marijuana including both legal and black-market sales is estimated to be around $52.5 billion, while the e-cigarette market is expected to grow to $6.6 billion in the US in 2018. Cigarette sales in the US are on a continuous decline over the last few years, largely owing to older smokers dying and very few young people taking up smoking.However, shares of Cronos rose as much as 23% as the news hit the market, pushing Cronos Group's market cap close to $2 billion. The news comes as Altria is also eyeing a significant minority stake in e-cigarette company, Juul, in-line with its diversification strategy.

Altria Group beat Q3 estimates of earnings-per-share (EPS) and revenue.Nu-Mark will sell only tobacco, menthol, and mint flavors of MarkTen and Green Smoke cig-a-likes until any further order from the FDA.

In an environment of increasingly health-conscious consumers and heightened health regulatory measures, Phillip Morris International seems to be tapering its cigarette business to focus more on healthier alternatives. In 2018, the company plans to invest almost $600 million in reduced risk products (RRP’s) or low-risk smoking alternatives – which includes its smokeless cigarettes, iQOS.The regulatory body has made it mandatory for tobacco companies to use precautionary labels on cigarette packets, and is reportedly trying to have manufacturers to reduce nicotine to low levels in their cigarettes.