Smokeless Products' Strength to Drive Altria (MO) Q3 Earnings –

Altria Group, Inc (MOFree Report) is scheduled to report third-quarter 2017 results on Oct 26. The company’s results for the quarter are expected to gain from increased volumes in the smokeless or low-risk tobacco products category. However, challenges in the smokeable category remain concerns.

Revenues to Gain From Smokeless Category Growth

The smokeless category has long been favoring Altria’s overall performance, enabling it to respond to consumer shift towards low-risk, smokeless tobacco products. Altria commands a number of strong brands in this category such as MarkTen e-cigarette and Copenhagen amongst others.

Owing to such trends, the Zacks Consensus Estimate for smokeless products net revenue is currently pegged at $562 million, which marks 6.4% increase from the prior-year quarter’s figure. Also, the consensus estimate in shipment volumes for the smokeless category is expected to grow 0.03% in the third quarter. We note that the Smokeless category’s shipment volumes increased 5.6% in the prior-year quarter, and increased 1.4% during second-quarter 2017.

Underlying Weakness in the Smokeable Category

Rising health consciousness and stringent government regulations surrounding the marketing and pricing of cigarette

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