Altria beats by $0.03, beats on revs; guides FY15 EPS in-line; Announces $1 bln share buyback
Reports Q2 (Jun) earnings of $0.74 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.71; revenues rose 5.7% year/year to $6.61 bln, which may not be comparable to the $4.75 bln consensus. Co issues in-line guidance for FY15, sees EPS of $2.76-2.81 vs. $2.81 Capital IQ Consensus Estimate. Altria expects its adjusted diluted EPS growth to moderate in the second half of 2015 versus the first-half rate due to several factors. These include lapping the effects of the 2014 improvements in the economy for adult tobacco consumers and lower gasoline prices, expected trade inventory movements and the effect of state excise tax increases. In addition, the comparative benefit from the expiration of the federal tobacco quota buy-out payments ends in the fourth quarter and Altria now estimates its 2015 full-year effective tax rate on operations will be 35.3%.