Altria (MO) Delivers Q2 Beat Driven by Nicotine Pouch Demand

Altria Group, Inc. (NYSE:MO) is one of the best dividend stocks to buy. On July 30, Altria reported Q2 revenue and profit above analysts’ estimates, driven by high demand for its on! nicotine pouches.

To compensate for falling sales of traditional cigarettes and chewing tobacco, the American Marlboro maker has been pushing its smoking alternatives, including nicotine pouches.

Altria’s NJOY vape sales were suspended earlier this year amid a patent fight, yet the on! segment’s growth helped balance out the fall in sales.

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In April, the company stated that NJOY would remain off the market this year, recording a significant loss for its vape division. Sales of unregulated disposable vapes, mostly imported from China, have hurt US vape and tobacco businesses. Altria noted that more seizures of such products influenced the market, yet it brought limited advantage to the company itself.

Altria’s Q2 revenue went up by 1.2%, even though analysts expected it to fall by 1.8%. Profits also came in stronger at $1.44 per share, compared to the $1.39 forecast, according to LSEG data. Sales of its on! nicotine pouches jumped 26.5%, while shipments in its smokeable tobacco division dropped 10.2%.

The company now expects full-year adjusted earnings of $5.35 to $5.45 per share, slightly higher than its earlier estimate of $5.30 to $5.45. Altria also mentioned tariffs as a bigger factor this year.

Altria CFO Sal Mancuso noted that tariffs have raised packaging costs, though the effect is limited. He said the company’s supply chain is flexible enough to handle them, even for NJOY’s future sales in the United States.

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