NEW YORK (TheStreet) -- Shares of Altria Group (MO) - Get Report are higher by 1.63% to $54.83 in mid-day trading on Tuesday, one day prior to the release of the tobacco company's 2015 second quarter earnings results. Altria will report its earnings before the market open tomorrow.
Analysts are expecting the company to post a year over year increase in earnings per share and revenue for the most recent quarter.
Altria has been forecast to report earnings of 71 cents per share on revenue of $4.75 billion for the second quarter.
Last year, Altria said its adjusted earnings came in at 65 cents per diluted share on revenue of $4.57 billion for the 2014 second quarter.
Altria Group is a Richmond, VA-based tobacco corporation that offers both smokeable and smokeless products.
Separately, TheStreet Ratings team rates ALTRIA GROUP INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALTRIA GROUP INC (MO) a BUY. This is driven by a number of 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, expanding profit margins, solid stock price performance and good cash flow from operations. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 24.2%. Since the same quarter one year prior, revenues slightly increased by 6.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, MO's share price has jumped by 29.00%, exceeding the performance of the broader market during that same time frame. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Tobacco industry and the overall market, ALTRIA GROUP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for ALTRIA GROUP INC is rather high; currently it is at 58.97%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 23.82% is above that of the industry average.
- Net operating cash flow has increased to $2,498.00 million or 17.55% when compared to the same quarter last year. Despite an increase in cash flow, ALTRIA GROUP INC's cash flow growth rate is still lower than the industry average growth rate of 30.89%.
- You can view the full analysis from the report here: MO Ratings Report