Altria's Earnings: Bull Case Still Intact for This Dividend Growth Stock

Altria (NYSE: MO) reported fourth-quarter earnings on Jan. 30, and the market did not take the news well -- Altria's shares fell by over 4%. On the surface, the price decline seems warranted, as Altria missed its revenue forecast and took another impairment charge on its JUUL investment. It also revised its medium-term adjusted earnings per share forecast lower and announced that it would no longer provide guidance on industry cigarette volumes. Not surprisingly, the earnings report did little to buoy investor confidence.

Image Source:Getty Images

Let's review the company's earnings results. Net revenue fell 1.8% to $6.0 billion, missing expectations. Adjusted earnings per share (EPS) rose 7.4% as pricing increases offset volume declines. The company's JUUL investment was written down by a further $4.2 billion, bringing the total writedown to close to 70% of the original acquisition price. Finally, Altria adjusted its medium-term adjusted EPS forecast downwards from a range of 5-8% growth to 4-7%, incorporating the litigation risks associated with JUUL.

Continue reading

Source Fool.com