How Will Altria Perform In Q2 2016?

Altria (NYSE:MO) is expected to announce its second quarter results on July 27, 2016.

Key Factors That May Affect The Quarter:

1) Solid Tone Set In Q1 2016

• Revenue, net of excise increased 6%.
• Impressive growth in the smokable products segment resulted in a growth of 5.3%, benefiting from cost cutting measures and higher pricing.
• Despite moderate cigarette industry volumes declines, Altria managed to increase volumes, due to market share gains and an additional shipping day.
• Higher net pricing and greater volume helped in the growth of the smokeless products segment.
• The national expansion of Copenhagen Mint also aided in higher volumes. Copenhagen was the fastest-growing smokeless brand and the largest, growing its retail share by 1.1 percentage points to 32.4%.

2) Growth Expected In The E-Cigarette Market

• Altria has become a significant player in this arena.
• However, despite big brands like MarkTen and Green Smoke, revenue from this segment is very small.
• The company has expanded the distribution of such products in several lead markets, which should drive sales.
• Partnership with Philip Morris may help to promote products which use the heat-not-burn technology.

3) Minimal Impact Of Foreign Currency Fluctuations

• In the aftermath of the Brexit, a number of companies that have a high exposure to the UK or the EU were faced with massive currency headwinds.
• As Altria only conducts domestic sales, it is immune to the strengthening of the dollar, or weakening of the pound or euro.
• Furthermore, given the clout of the tobacco lobbies, it will be difficult to pass laws such as the plain packaging ones in the US. As a result, Altria is less susceptible to the risk plaguing a number of its competitors with international operations.

Have more questions on Altria? Have a look at the links below:

• Is Altria’s Growth Sustainable?
• What Can Lead To A 10% Downside In Altria’s Valuation In The Next Few Years?
• Which Is A Better Dividend Bet – Altria Or Philip Morris?
• Altria’s Stock Still Smoking Hot After The Brexit
• What Will Be Altria’s Revenue And EBITDA Breakdown In 2016?
• What Are Altria’s Strategies For Long-Term Growth?
• How Will Altria Perform In 2016?
• How Will The New FDA Ruling On E-Cigarettes Help Altria?
• What Is The State Of The Vapor Market In The U.S.?
• How Did The Different Segments Of Altria Perform In Q1 2016?
• Impressive Growth In The Smokeable Products Segment Helps Altria Beat Estimates
• How Will Altria Perform In Q1 2016?
• What Are Altria’s Strengths Driving Long-Term Growth?
• What Are Some Obstacles To Altria’s Long-Term Growth?
• How Will Altria’s Revenue And EBITDA Change In The Next 3 Years?
• How Has Altria’s Revenue And EBITDA Composition Changed In The Last 5 Years?
• Altria: Year 2015 In Review
• How Has Altria’s Shipment Volume, By Brand, Changed Over The Past 3 Years?
• How Has Altria’s Retail Share In Smokable Products And Smokeless Products Changed Over The Last Year?
• What is Altria’s Revenue And EBITDA Breakdown?
• What is Altria’s Fundamental Value Based On Expected 2016 Results?
• By What Percentage Did Altria’s Revenue & EBITDA Grow In The Last 5 Years?

Notes: