Why Altria's Earnings Miss Won't Burn Investors
Tobacco stocks are often considered recession-resistant because people tend to still smoke when the economy sours. But as Altria's (NYSE: MO) third-quarter results show, not even cigarette companies are immune from the impact of stagflation.
The highest inflation rate in 40 years coupled with rising interest rates, still-elevated gas prices, and an uneven economy is proving even too much for smokers as Altria missed analyst expectations for revenue and profits for the period. It wasn't a terrible result, but it's clear the challenging environment is having an impact.
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Source Fool.com
