NEW YORK (TheStreet) -- Shares of Altria (MO) - Get Report are down 2.44% to $66.27 in late morning trading today after the cigarette company reported mixed second quarter results before Wednesday's market open.
Altria reported earnings of 81 cents per share, beating analysts estimates by a penny. Revenue net of excise taxes came in at $4.88 billion, missing analysts projections of $5.01 billion.
Last year, Altria posted earnings of 74 cents per share on revenue of $4.88 billion for the second quarter.
The company raised its 2016 guidance to a range of $3.01 to $3.07 adjusted earnings per share.
Additionally, Altria announced its stake in SABMiller (SBMRY) will change if the brewing company is bought by Anheuser-Busch InBev (BUD). Altria would exchange its approximately 27% economic and voting interest in SABMiller to interest that will yield about 10.5% equity ownership in the new, combined company.
Yesterday, AB InBev sweetened its offer for SABMiller in a new cash-and-share offer valuing the company at £79 billion compared with the £73 billion agreed last November.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate ALTRIA GROUP INC as a Buy with a ratings score of B+. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, growth in earnings per share, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: MO