Boston, MA 05/30/2014 (wallstreetpr) – Altria Group Inc (NYSE:MO), a prominent brand in the realm of manufacture and outright sales of cigarettes, pipe tobacco, and other tobacco stuffs and smokeless products, is having a dream run, presumably, as the stock prices are shooting up quite constantly, currently fluttering at its acme – at its 5 year high! This substantial rise has gathered momentum soon after its dwindling international tobacco business hit back in a more pronounced and efficacious way, since it recovered from its financial crisis!
Litigation Concerns – ‘No Concern’!
Despite litigation concerns and a series of incumbent threats pertaining to liability or regulatory issues, Altria Group Inc (NYSE:MO) has veered through, dazzling unfazed! Its electronic cigarette venture is also prospering stupendously these days. The persistent growth has benefited investors, as lately, the company announced a 5% yield in net dividends payable during FY 2014-15.
A ‘Green’ Takeover
Meanwhile, in April, its subsidiary Nu Mark LLC completed its acquisition of Green Smoke, Inc, at $110 million (in cash) and $20 million (vide incentive payments). This clearly indicates the company’s conviction in its business endeavors and market outreach strategies and depicts that significant capital appreciation has added fire to the wings of MO!
First Quarter Highlights
Altria Group Inc (NYSE:MO)’s first quarter ended on a moderate note, but with immense conviction for sustained growth! The company’s earnings/share decreased to $0.59 year-over-year, by a significant 14.5%! However, its Q1 diluted EPS increased 5.6%, estimating at $0.57. MO conjectured that it is hopeful of attaining diluted EPS within a gamut of $2.53 and $2.60 per share during 2014, representing a solid growth of 6% over the same, in 2013.
Promotional Flashlights Backfired Owing To “Fire-Fright”!
In March 2014, MO had launched a promotional disbursement of 365,000 flashlights for its Marlboro brand cigarettes; however, apparently, ‘fire fright’ created a fuss, as there was a lurking probability that matches in a match-holder can spur fire, when in contact with striker pads, posing significant burn injuries to its consumers! Hence, the company ordained to recall the lots of bronze-colored three-in-one flashlights (each with 0.5 inches of radius and length of 4.5 inches) possessing 5 LED lights. Indeed, the idea of using flashlights for promotions has backfired the company, though major issues haven’t yet been reported!
