Altria Posts Upbeat Q2 Earnings, Lifts FY15 Forecast

reported better-than-expected earnings for the second quarter and lifted its full-year earnings forecast. The Richmond, Virginia-based company posted quarterly net earnings of $1.45 billion, or $0.74 per share, compared to $1.26 billion, or $0.64 per share, in the year-ago period. Its adjusted earnings came in at $0.74 per share. Its revenue rose 5.7 percent to $6.61 billion, while revenue net of excise taxes gained 6.7 percent to $4.9 billion. Analysts were expecting earnings of $0.71 per share on revenue of $4.75 billion. The average estimate among 8 Estimize users was for earnings of $0.72 per share and revenue of $4.85 billion. The smokeable products segment's net revenue rose 6.5 percent in the quarter, while the smokeless products segment's revenue climbed 3.7 percent. In the wine segment, Ste. Michelle grew revenue by 10.3 percent. During the second quarter, the company repurchased around 5.2 million shares of its common stock for a total cost of $263 million. The company also announced a new $1 billion stock repurchase program. "Altria delivered excellent second-quarter and first-half results, growing adjusted diluted EPS more than 13% with a very strong performance from the smokeable products segment and solid contributions across our other businesses. Further, our tobacco companies' brands continued to strengthen their market leadership, with record retail share on Marlboro and more than 51% combined share on Copenhagen and Skoal year-to-date," said Marty Barrington, Altria's Chairman, Chief Executive Officer and President. Altria now projects 2015 full-year adjusted earnings of $2.76 to $2.81 per share, versus adjusted earnings of $2.57 per share in 2014. Altria shares gained 2.45 percent to close at $55.27 yesterday.