Shares of Altria (MO -3.11%), the tobacco giant best known as the domestic maker of Marlboro cigarettes, were heading lower after its guidance for 2025 disappointed investors.

As a result, the stock was down 4.2% as of 10:01 a.m. ET.

Image source: Getty Images.

Altria is still struggling to grow

Revenue in the quarter was flat at $5.97 billion, though excluding excise taxes, it was up 1.6% to $5.11 billion, which was ahead of estimates at $5.05 billion.

Cigarette sales continued to decline, with volumes falling 8.8% to 16.6 billion sticks in the quarter. Marlboro's market share also fell a percentage point to 41.3%.

Elsewhere, on!, its oral nicotine pouch that competes with Zyn, continued to experience strong growth to 43.9 million cans, though that wasn't enough to drive growth in the overall oral tobacco category. NJOY, its other major growth product, reported a 15% increase in consumer volume to 12.8 million, and a 22% increase in device shipment volume to 1.1 million units.

On the bottom line, adjusted earnings per share grew 9.3% to $1.29 as the company benefited from share buybacks. That essentially matched the analyst consensus at $1.28.

CEO Billy Gifford called 2024 a pivotal year for the company, adding, "Our companies' leading brands and talented teams enabled our core tobacco businesses to deliver solid income growth and margin expansion."

Guidance comes up short

The main reason Altria stock pulled back was its guidance came up short. Management said adjusted earnings per share would grow 2% to 5%, reaching $5.22 to $5.37, which compares to the analyst consensus of $5.35.

The company continues to face a wide range of challenges, including competition from vapes, illegal and legal, as well as regulations that threaten the tobacco industry.

Most investors hold this stock for the dividend, which is safe, offering a yield of nearly 8%. However, weak earnings growth could lead to falling profits, and that would jeopardize the company's ability to grow its dividend.