Altria's Revenue Stronger Than Expected

Altria Group (MO Quote) met analysts' expectations with its first-quarter earnings and said net revenue increased 2.8% from the same period a year ago.

The cigarette maker, which recently completed the spinoff of Philip Morris International (PM Quote) a year after parting ways with Kraft (KFT Quote), had earnings for the quarter of $2.45 billion, or $1.16 a share, once various items were factored in. Altria earned $2.75 billion, or $1.30 a share, in the year-earlier period.

Excluding costs related to the spinoff of Philip Morris International and the closing of Altria's headquarters in New York, as well as other items, the company would have had earnings from continuing operations of 37 cents a share, up from 33 cents a year ago. On that basis, Altria matched estimates.

Revenue rose to $4.41 billion from $4.29 billion and exceeded the consensus forecast of $3.83 billion.

Altria reaffirmed its 2008 guidance for adjusted earnings from continuing operations in the range of $1.63 to $1.67, representing a growth rate of approximately 9% to 11% from a base of $1.50 in 2007. On average, analysts are looking for $1.67.

On Wednesday, Philip Morris International topped analysts' estimates for the quarter ended March 31.

Shares of Altria rose 1% to $22.53 in regular trading, but gave all of it away in extended action.

Loews (LTR Quote), which has a tobacco unit, was losing 0.6%. British American Tobacco (BTI Quote) wasn't trading late, after it gained 1% in the regular session. Imperial Tobacco (ITY Quote) was fractionally lower, and Reynolds American (RAI Quote) was unchanged.