A Look Ahead to Altria Group’s Earnings

Altria Group Inc. (MO) is scheduled to announce earnings before the market opens on Wednesday, October 20th. Looking at the analyst consensus, it appears most traders believe MO is going to announce a profit of 52 cents per share.

Comparing the consensus estimate with MO’s profit of 48 cents per share a year ago, you can see that most analysts believe the company performed better this year than it did last year.

As you prepare for MO’s announcement on Wednesday, remember that a profit of 52 cents per share has already been priced into the value of the stock. So if earnings come in at that level, we probably won’t see much change in the price of the stock—unless the company changes its outlook for the future. It’s also important to remember that good earnings don’t always lead to higher stock prices.

MO has gained 37 cents (1.51 percent) during the past week and is currently trading above its 20-day, 50-day and 200-day moving averages.

Investors will also be evaluating other stocks in the Cigarettes industry as MO announces its earnings to see if any of the same factors that are influencing MO may also come to bear on those stocks.

Philip Morris International, Inc. (PM) is the largest company in the Cigarettes industry (based on market cap), and has been doing well recently. During the past year, PM has seen earnings per share (EPS) grow by $3.69. Looking at PM’s recent stock performance, PM has gained $4.06 (7.45 percent) during the past month and is currently trading above its 20-day, 50-day and 200-day moving averages.

British American Tobacco plc (BTI) is also a member of the Cigarettes industry. Looking at the same time frame, BTI has watched EPS expand by $4.48. BTI has gained $4.04 (5.49 percent) during the past month and is currently trading above its 20-day, 50-day and 200-day moving averages.

Reynolds American Inc. (RAI), another industry peer, has gained ground during the past year. RAI has experienced growth of $4.16 in EPS. RAI has gained $3.34 (5.72 percent) during the past month and is currently trading above its 20-day, 50-day and 200-day moving averages.

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