Yahoo Finance Could Altria’s 1Q16 Earnings Boost Its Stock?
Could Altria's 1Q16 Earnings Beat Wall Street Estimates?
Stock price rose after 4Q15 results
Altria Group (MO) is set to release its fiscal 1Q16 earnings as the market opens on April 28, 2016. MO was trading at $62.17 on April 18, 2016. The stock price is up ~27% from the price on January 2, 2015. The benchmark S&P 500 (SPY) (IVV) (VOO) is also up, by 1.8%. Following the release of Altria’s 4Q15 results, its stock price rose 1.1%.
Stock price movement: Peer comparison
Altria Group’s stock has risen consistently since the beginning of last year. The stock price did fall by ~8% to $47.54 on June 15, 2015, from $51.62 on May 28, 2015, due to a sharp rise in gasoline prices. This increase dragged down consumer disposable income and premium cigarette purchases. However, the stock rose again, trading at its peak of $63.82 on April 12, 2016.
Philip Morris International’s (PM) and Reynolds American’s (RAI) stock prices have also increased, by 24.2% and 53.9%, respectively, since January 2, 2015. RAI’s stock has gained momentum due to its recent announcement of the asset sale to Japan Tobacco (JAPAY) (JAPAF) for $5 billion on September 29. RAI has risen ~13% since then.
To learn more about the deal, please read Japan Tobacco Buys Natural American Spirit’s International Assets . Vector Group (VGR) and British American Tobacco (BTI) have also risen, increasing by 3.5% and 15.3%, respectively, since January 2, 2015.
Dividend and share repurchase
On February 25, Altria declared a regular quarterly dividend of $0.57, which was payable on April 11, 2016, to shareholders on record as of March 15, 2016. Altria Group paid $4.2 billion in dividends to its shareholders in fiscal 4Q15, consistent with its goal of paying out ~80% of adjusted diluted earnings per share. The company completed a $1 billion share repurchase program in fiscal 4Q15 and announced a new $1 billion program that it expects to complete by the end of 2016.
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