Vector Group Stock Plummets After Slashing Dividend
Shares of Vector Group (NYSE: VGR) were down 10.8% just before noon EST on Wednesday, following Tuesday's release of the company's third-quarter financial results after market close. Today's sell-off is a bit of a surprise for many investors in the tobacco stock, since the $0.23 in earnings per share it delivered were well above expectations for $0.13 per share.
While it came in well ahead of expectations on the bottom line, Vector Group's $505 million in revenue fell short of expectations by about $22 million. Not only was it short of estimates, but it was also $9 million lower year over year. On the earnings call, management provided a breakdown of revenue across its business units, which include its tobacco business as well as its growing investment in real estate. The company described the decline in revenue as coming from its real estate segment, which can be lumpy from one quarter to the next.
Looks like Vector Group's dividend was out of reach. Image source: Getty Images.
Source Fool.com
