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Altria (NYSE:MO) updated financial targets during its Investor Day event on Thursday. For starters, guidance for full-year adjusted EPS in a range of $4.98 to $5.13 was reiterated.
Looking further ahead, the tobacco company set a goal to deliver mid-single digits adjusted diluted EPS growth on a compounded annual basis through 2028. On the capital allocation front, Altria (MO) set what it calls a new progressive dividend target for mid-single digits dividend growth annually. In terms of the balance sheet, Altria (MO) has a goal for a capital structure with a debt-to-consolidated EBITDA ratio of approximately 2.0X.
Altria (MO) execs discussed the new SWIC heated tobacco capsule product, which uses proprietary technology to heat tobacco-filled capsules that are heated to deliver an inhale that is similar to a cigarette. The new On Plus! wet tobacco product was also highlighted. Altria (MO) also issued broad statements on the long-term growth plans.
“We believe the international smoke-free and non-nicotine categories combined represent multi-billion dollar opportunities for us. Our teams are evaluating these opportunities and expect to finalize strategies for these growth areas over the next 12 months. We intend to share specific goals for these areas once established.”
Interestingly, Altria (MO) said those non-nicotine offerings could including cannabis and caffeine pouches.
The MO presentation was not enough to knock Bank of America off its Neutral rating. While MO is noted to have a long history of adapting to changes in U.S. nicotine landscape, the firm anticipates Philip Morris International’s (PM) U.S. entry to make waves for peers due to its deep pockets and smoke-free vision.
Shares of Altria (MO) poked out a small gain of 0.37% in mid-day trading on Friday.
Seeking Alpha Contributor Librarian Capital has a detailed breakdown on the Altria event.
