The CDC also confirmed 39 deaths, with Massachusetts reporting an additional death last Wednesday, not yet confirmed by the CDC. Its name is Juul. The Federal Trade Commission sued on April 1 to separate the two companies, and Juul said later in the month that it would lay off a third of its staff.

Altria expects full-year adjusted EPS of $4.39 to $4.51, wrapping around the FactSet consensus of $4.45. Copyright, Trademark and Patent Information. Juul will add two Altria directors to its board as soon as it receives antitrust clearance for the investment, along with three independent directors, the Juul CEO and three directors designated by Juul shareholders.

Can Altria Withstand a Second COVID-19 Market Rout?

Altria stock cratered as much as 7% Thursday after the tobacco company posted a fourth-quarter loss and took a $4.1 billion hit on its investment in e-cigarette company Juul… According to its press release, "Vitamin E oil was detected in all 29 samples taken from vaping patients tested by the CDC." While the Juul saga plays out, Altria looks like an appealing value play trading at a P/E less than 10 and currently paying an 8.5% dividend yield. “Has the cigarette business really become so hard to forecast that the market leader feels uncomfortable predicting volume growth on a three-year view?,” asked Bernstein analysts in a note to clients. Returns as of 09/24/2020.

See also: E-cigarettes may actually be worse for your heart than regular cigarettes. Cookie Notice.

Facts will eventually replace hysteria and the industry should return to growth. This has pressured Altria's stock price further causing its market cap to shed around $9.3 billion since the deal, essentially removing the entire investment from Altria's market capitalization.

Further, given the stock is currently trading at roughly 10x forward earnings, the potential for multiple expansion can not be ruled out. In February, the stock slipped as fears of the pandemic swept the market, squeezing valuations and posing a threat to Altria's factories and consumer spending due to stay-at-home orders. Prior to the Juul investment, Altria's operations were largely confined to the U.S. after its 2008 spin-off of Philip Morris International (NYSE:PM).

“Without further explanation from the company, to us this likely suggests that given the recent turbulence in the e-vapor market (and at Juul specifically), it is probably operating with big losses that Altria does not want to bring into its own P&L.”, On the earnings call, Altria CEO Willard acknowledged that expectation: “We don’t have any expectations that we would receive dividends over the next three years.”. Any downside at Juul is also felt at Altria Group Inc. (NYSE: MO), which made a big investment in Juul in 2018. So if vitamin E oil ends up being the culprit, Juul and Altria will be in the clear, at least with concern to the illnesses. According to data from S&P Global Market Intelligence, the stock has slipped 21% through the first six months of the year. She is based in New York. -0.66%

See: Raising the legal tobacco age from 18 to 21 could save 50,000 lives. In early April, the U.S. Federal Trade Commission (FTC) filed an administrative complaint alleging that Altria Group Inc. (NYSE: MO) and Juul Labs violated federal antitrust laws.

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