(RTTNews) - Altria Group, Inc. (MO) reestablished 2020 earnings guidance based on a better understanding of COVID-19 impacts on adult tobacco consumer purchasing behavior and an additional quarter of ABI earnings contributions. The company expects 2020 adjusted earnings per share to be in a range of $4.21 to $4.38, representing a growth rate of 0% to 4% from 2019.
Altria said the company is currently not reinstating its 2020 to 2022 compounded annual adjusted earnings per share growth objective.
Altria revised its 2020 estimated full-year domestic cigarette industry adjusted decline rate to be in a range of 2% to 3.5% from a range of 4% to 6%. Altria continues to expect 2020 capital expenditures of between $200 million and $250 million.
Second quarter adjusted earnings per share increased 0.9% to $1.09. On average, 11 analysts polled by Thomson Reuters expected the company to report profit per share of $1.06, for the quarter. Analysts' estimates typically exclude special items.
Second quarter net revenues decreased 3.8% to $6.4 billion, primarily due to lower net revenues in the smokeable products segment. Revenues net of excise taxes decreased 2.5% to $5.1 billion. Analysts expected revenue of $5.04 billion for the quarter.
On July 27, Altria's Board declared an increase in the quarterly dividend to $0.86 per share from $0.84 per share. The quarterly dividend will be paid on October 9, 2020 to shareholders of record on September 15, 2020. The new annualized dividend rate is $3.44 per share, an increase of 2.4% from $3.36 per share.
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