Altria's Q2 Disappoints, but Sights Are Set on the Future
When Altria (NYSE: MO) raised its cigarette prices in June just two months after having raised them in April, analysts cheered the bullish signal from the cigarette giant because it was flexing its pricing power. A more sober view of the increase saw it as actually a warning sign that tobacco sales were going to be worse than expected and that Altria needed the extra money to maintain profits.
That seems to be exactly what happened in the second quarter, since Altria reported revenue of $5.19 billion, beating Wall Street expectations by $110 million and matching earnings projections of $1.10 per share, a 9% increase over the year-ago figure.
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