Altria guidance and NJOY ruling to weigh on shares, says Citi

Citi says that while Altria Group’s (MO) Q4 earnings were marginally ahead of consensus, the quality of delivery is low. Altria’s Q4 US combustible volume decline of 8.8% was slightly better, but a further acceleration in discount share and bigger losses in the NJOY division meant overall group operating profit was 1% below Street estimates, the analyst tells investors in a research note. The firm says a lower tax rate drove the earnings beat while the 2025 earnings outlook is below estimates. The weaker underlying profit momentum and the International Trade Commission ruling supporting Juul’s claim of patent infringement against NJOY is likely to weigh on the shares, contends Citi. The firm keeps a Neutral rating on Altria with a $52 price target