Altria Group (MO) shares plummeted 8.78% in pre-market trading on Thursday after the tobacco giant reported second-quarter adjusted earnings per share of $1.48, missing the consensus analyst estimate of $1.50. The earnings shortfall overshadowed a revenue beat, with quarterly sales of $6.11 billion exceeding expectations of $5.35 billion.

The profit miss was driven by softening demand for Altria's premium cigarette brands as macroeconomic pressures and higher living costs prompted consumers to trade down. Shipment volumes for flagship Marlboro cigarettes fell 7.4% in the quarter, while discount cigarette shipments surged 67.3%, signaling a pronounced shift toward lower-priced options. The oral tobacco segment also faced headwinds, with on! nicotine pouch shipment volumes declining 4.2% and segment revenue dropping 5.3%.

Altria narrowed its full-year adjusted EPS guidance to a range of $5.61 to $5.72, compared with the prior outlook of $5.56 to $5.72, and noted expectations for greater benefits from cigarette import and export activity in the second half. However, the bottom-line miss and volume deterioration across key product categories weighed heavily on investor sentiment, driving the pre-market sell-off.