Can Altria Sustain EPS Gains as Revenues Decrease 1.7% Y/Y?

Altria Group, Inc.’s (MO) ability to deliver 3.6% growth in adjusted earnings per share (EPS) to $1.45 in the third quarter of 2025 contrasts with a 1.7% year-over-year decline in revenues net of excise taxes to $5.25 billion. This divergence highlights how earnings held up despite ongoing revenue pressure. The improvement was driven primarily by higher adjusted operating companies income and a reduced share count.On the operating side, profitability gains were largely margin-driven. In the smokeable segment, adjusted operating companies income rose 0.7%, supported by pricing gains and lower per-unit settlement charges, even as domestic cigarette shipment volumes declined more than 8%. Adjusted operating margins in smokeables expanded 130 basis points to 64.4%, helping offset the drag from lower volumes. The oral tobacco segment reflected a similar pattern, with adjusted margins improving 240 basis points to 69.2% despite a 4.3% decline in segment revenues.The second major contributor to EPS growth was share repurchases. During the quarter, the company bought back 1.9 million shares, and through the first nine months had retired 12.3 million shares. Management cited fewer shares outstanding as a key factor behind the higher per-share earnings.Taken together, pricing actions, margin expansion and share reduction supported EPS growth even as revenues declined, illustrating how earnings performance this quarter was largely shaped by profitability and capital return dynamics rather than top-line expansion.Peers vs. MO: A Look at EPS Growth Backed by Revenue MomentumPhilip Morris International Inc. (PM) delivered 17.3% year-over-year growth in adjusted EPS in the third quarter of 2025, supported by a 9.4% increase in net revenues. Philip Morris benefited from strong pricing and rising volumes in smoke-free products, allowing it to expand both earnings and the top line simultaneously. Margin expansion also contributed meaningfully to Philip Morris’ earnings growth profile.Turning Point Brands, Inc. (TPB) recorded 31.2% growth in consolidated net sales to $119 million and an 18.3% surge in net income to $19.6 million. Turning Point Brands adjusted EPS of $1.05, up from 91 cents a year earlier. Turning Point Brands achieved this growth through strong momentum in modern oral products and operating leverage, reflecting continued earnings expansion.Altria’s Price Performance, Valuation & EstimatesShares of Altria have gained 4.4% in the past month compared with the industry’s growth of 8.6%.Image Source: Zacks Investment ResearchFrom a valuation standpoint, MO trades at a forward price-to-earnings ratio of 10.65X, down from the industry’s average of 14.52X.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for MO’s 2025 earnings per share has inched up 1 cent in the past 30 days to $5.44, while the same for 2026 has slipped 1 cent to $5.56.Image Source: Zacks Investment ResearchAltria currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Altria Group, Inc. (MO): Free Stock Analysis Report Philip Morris International Inc. (PM): Free Stock Analysis Report Turning Point Brands, Inc. (TPB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks