Altria Group, Inc. ( MO ) shares slipped on Thursday as a slump in smokeable and oral tobacco sales in the third quarter weighed on year-over-year revenue growth.

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The company reported third-quarter adjusted earnings per share of $1.45 (up 3.6% year over year), in line with the analyst consensus estimate.

Quarterly sales of $6.072 billion (down 3% year over year) outpaced the Street view of $5.309 billion.

Lower net revenues in the smokeable and oral tobacco products segments drove the decrease in sales. Revenues net of excise taxes decreased 1.7% to $5.3 billion.

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Metrics

During the quarter, net revenue from oral tobacco products fell 4.6%, driven by lower shipment volumes. Smokeable products net revenue declined 2.8%, reflecting softer volumes and higher promotional investments.

Billy Gifford, Altria’s Chief Executive Officer, said, “Our core tobacco businesses remained resilient; we advanced our smoke-free portfolio; and we opened new pathways for long-term adjacent growth in international modern oral and U.S. non-nicotine innovation.”

Quarterly gross profit increased 0.1% year over year to $3.812 billion. Operating income rose 2.5% to $3.230 billion.

The company exited the quarter with cash and equivalents worth $3.472 billion.

Dividend

The company said its board expanded the share repurchase program to $2 billion from $1 billion, now running through Dec. 31, 2026, with buybacks contingent on market conditions and at the board’s discretion.

“We maintain our progressive dividend goal that targets mid-single digits dividend per share growth annually through 2028,” the company said.

Outlook

The firm raised its fiscal 2025 adjusted EPS outlook to $5.37 to $5.45, up from $5.35 to $5.45 and compared with the $5.44 analyst estimate.

“We expect EPS growth to moderate in the fourth quarter as we lap the lower share count associated with the 2024 accelerated share repurchase program completion and the benefit of the Master Settlement Agreement legal fund expiration,” the company said.

MO Price Action: Altria Group ( MO ) shares were down 6.74% at $57.79 at the time of publication on Thursday, according to Benzinga Pro data.

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