Marlboro cigarattes-maker abandons buybacks amid coronavirus
Altria Group plans to keep paying a dividend
Marlboro cigarettes maker Altria Group Inc. abandoned its earnings forecast for 2020 and beyond, citing “uncertainty” related to the coronavirus pandemic.
Shares of the company, however, rose about 3% in early trading after it said it would continue to pay a dividend.
Altria said it would approach the 2020 dividend by recommending a quarterly rate that reflects its cash position and balance sheet strength.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MO | ALTRIA GROUP INC. | 43.54 | +0.62 | +1.44% |
To save cash, its board also decided to rescind its $1 billion share buyback program that had $500 million remaining.
CLICK HERE TO READ MORE ON FOX BUSINESS
Revenue, net of excise taxes, rose 15% to $5.05 billion, helped by shoppers stocking up on cigarettes ahead of coronavirus-related shutdowns around the world. Analysts on average expected $4.61 billion, according to Refinitiv.
Earnings per share came in at $1.09, handily beating the average analyst estimate of 98 cents per share.