Shares of Altria Group (MO) tumbled 5.07% in pre-market trading on Thursday following the release of its third-quarter earnings report, which highlighted ongoing challenges in the tobacco industry and provided a cautious outlook for the year.

The maker of Marlboro cigarettes reported third-quarter revenue of $6.07 billion, down 3% from the same period last year. The decline was primarily driven by lower net revenues in the smokeable products segment, which fell 2.8% to $5.39 billion. Altria's cigarette shipment volumes continued to decrease, with Marlboro volumes dropping 11.7% and overall domestic cigarette volumes declining 8.2% in the quarter.

While Altria's adjusted earnings per share of $1.45 met analysts' expectations, the company's annual profit forecast disappointed investors. Altria narrowed its 2025 full-year adjusted EPS guidance to a range of $5.37 to $5.45, with the midpoint falling below the average analyst estimate of $5.44. The tepid outlook reflects ongoing challenges in the tobacco industry, including competition from unregulated vape products and changing consumer preferences. CEO Billy Gifford attempted to reassure investors by stating that the company's core tobacco businesses "remained resilient" while Altria continues to build its smoke-free portfolio. However, the market's reaction suggests that investors remain concerned about the company's ability to navigate the shifting landscape of the tobacco industry.