Another problem that could eventually hit Altria Group, Inc. (NYSE:MO) earnings is counterfeiting. So far, Altria, Lorillard Inc. (NYSE:LO), and Reynolds American haven’t seen a huge hit from counterfeiting within the U.S., as sophisticated packaging that makes counterfeiting more difficult has been an effective deterrent, and Philip Morris International Inc. (NYSE:PM) has had to deal with the much-more challenging European market in protecting its brands. Yet, as proposals for higher taxes at the state and federal level add to costs, the incentives for counterfeiting keep rising, and the problem could worsen for Altria Group, Inc. (NYSE:MO) looking forward.
In the Altria earnings report, watch to see how the tobacco giant responds to efforts from rival Lorillard Inc. (NYSE:LO) to bolster its e-cigarette business. With greater regulation making Americans seek alternative ways to get nicotine, e-cigarettes are gaining in popularity, and Altria Group, Inc. (NYSE:MO) has promised to come out with a product in August that will serve the market. Depending on how the FDA chooses to regulate e-cigarettes, the company’s success or failure with its product could make a huge difference to Altria Group, Inc. (NYSE:MO) earnings going forward.
The article How Altria Earnings Could Keep Shares Smoking originally appeared on Fool.com.
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