Altria (MO, $48.44) forecasts slowing cigarette volumes, and hints at uncertainty over Juul
On Tuesday, Altria Group reported second-quarter adjusted earnings that was almost in line with analysts' expectations. However, the cigarette maker warned that cigarette sales declines are worsening, and also expressed current uncertainty on Juul’s international expansion.
Excluding special items such as litigation, costs associated with Altria's investment in Anheuser-Busch InBev and its stake in Canadian cannabis producer Cronos, Altria’s earnings came in at $1.10 a share for the quarter, almost matching the consensus estimate of analysts polled by FactSet.
The company's total sales climbed +5.5% year-over-year to $5.19 billion in the quarter, surpassing analysts’ expectations of $5.09 billion.
Altria also affirmed its projection of full-year adjusted earnings of between $4.15 and $4.27 a share.
However, the company indicated that U.S. cigarette volumes would decline between -5% and -6% this year, as cigarette smokers switch to e-cigarettes. 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%. The company feels that part of this can be attributed to 18 states raising the permissible smoking age to 21.
Apparently in a bid to capitalize on the growing e-cigarette market, Altria invested $12.8 billion last year for a 35% stake in e-cigarrette startup Juul. Altria is hoping for Juul’s international growth to boost business, but Altria CEO Howard Willard said it’s “too soon” to judge the outcome. Meanwhile, e-smoking apparently continues to face scrutiny in various parts of the world for its burgeoning popularity among teenagers.
Other recent instances of product-portfolio diversification of the Marlboro-maker include its $1.8 billion investment for a 45% stake in Canadian cannabis company Cronos earlier this year , and its $372 million spending for oral nicotine pouch brand On.
Altria will also begin selling heated tobacco product iQOS, in the U.S. this summer. Philip Morris International will license the device to Altria. The Food and Drug Administration earlier this year gave its approval on iQOS sales in the U.S.
MO sees its Stochastic Oscillator ascending out of oversold territory
On June 12, 2025, the Stochastic Oscillator for MO moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 54 instances where the indicator left the oversold zone. In of the 54 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 18, 2025. You may want to consider a long position or call options on MO as a result. In of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for MO just turned positive on June 18, 2025. Looking at past instances where MO's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
MO moved above its 50-day moving average on June 11, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MO advanced for three days, in of 372 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 315 cases where MO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (4.828). P/E Ratio (10.025) is within average values for comparable stocks, (20.351). MO's Projected Growth (PEG Ratio) (4.018) is very high in comparison to the industry average of (1.006). Dividend Yield (0.068) settles around the average of (0.055) among similar stocks. MO's P/S Ratio (5.020) is slightly higher than the industry average of (2.115).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. MO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a holding company which produces and markets tobacco products
Industry Tobacco
Advertisement