Altria Group Inc. (MO) that runs premier tobacco operating companies in the U.S., Thursday announced a decline in the first-quarter net earnings, hurt by loss on early extinguishment of debt. Revenue, however, climbed 5.6 percent from last year. On an adjusted basis, earnings as well as revenue beat Street consensus.
The company also reaffirmed its full year 2015 adjusted earnings per share, projecting a growth of 7 to 9 percent over last year.
The Richmond, Virginia based Fortune 200 company that manufactures and sells cigarettes, smokeless products and wine through its subsidiaries, recorded 13.4 percent decline in net earnings to $1.018 billion from $1.175 billion last year. Earnings per share were down 11.9 percent to $0.52 from $0.59 in the previous year.
The result included one-time loss of $228 million on early extinguishment of debt.
On an adjusted basis, first-quarter earnings increased 10.5 percent to $0.63 per share from $0.57 per share a year ago.
On average, 9 analysts polled by Thomson Reuters were looking for $0.62 per share. Analysts' expectation usually exclude special items.
Revenue for the group climbed 5.2 percent to $5.804 billion from $5.517 billion a year ago. Wall Street expected $4.13 billion in revenue. Skokeable products, led by Malboro brand of Phillips Morris & Co. Ltd, contributed revenue of $5.221 billion, smokeless product revenue was $430 million, while revenue from wine segment was $134 million.
Looking ahead, for full year 2015, the company reaffirmed its adjusted earnings outlook of $2.75 to $2.80 per share, up 7 to 9 percent from last year.
Street analysts are looking for full-year earnings of $2.80 per share, on revenue of $18.37 billion.
MO is currently up $0.46 pence or 0.88 percent, on a volume of 2.125 million shares on NYSE.
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